The delinquencies for loans in local currency totaled 1.29bln lei in July this year, while those for fx loans 30 days past due stood at 618 mln lei.

In July, the delinquency volume for loans 90 days past due amounted 1.64 bln lei, 8.8% more than in June and three times more than a prior-year period.

The number of arrears increased sharply in first half this year, from 684,272 in January to 895,595 at the end of July.

The number of loans more than 30 days in arrears climbed to 611,236 in July, 8,688 more than a month earlier and 161,000 more than end-2008.

However, loans more than 90 days past due pose the biggest threat to local banks, as lenders are due to make significant bad debt provisions for these non-performing loans