Romania's central bank reports rise in household debt and shifting credit sources in 2025

The National Bank of Romania (BNR) reports that household debt increased by 9.5% in 2025, while overall private‑sector borrowing slowed, with corporate debt growth falling from +8.1% in 2024 to +5.1% in 2025. Banks remain the main source of financing, providing 74.4% of total private debt. Non‑bank financial institutions (IFNs) expanded their role, delivering 11.5% of the private sector’s total debt, up from 10.6% the previous year. Foreign‑origin debt rose faster than domestic borrowing, with external financing accounting for 87.9% of non‑financial corporations’ total debt. Mother‑daughter loans represent 31% of private‑sector debt and 43% of non‑financial corporate indebtedness. Most household loans are denominated in the national currency (93%); corporate exposure to foreign currency remains significant, comprising roughly half of banks’ corporate portfolios. BNR’s macro‑prudential measures continue to focus on debt sustainability, especially as living‑cost pressures and fiscal dynamics could heighten vulnerabilities.

The report also notes that while credit costs rose, particularly labour‑related expenses, they were not fully offset by revenue growth, leading to a modest deterioration in overall financial health indicators. Nevertheless, the aggregate risk level stays outside the danger zone and above pre‑pandemic standards, with agriculture, real estate and utilities identified as sectors closer to risk thresholds.