Moldova's banking system is improving loan quality, but the mortgage segment's problem loan rate has exceeded the system average for the first time - Veaceslav Ioniță
In his weekly program, IDIS "Viitorul" economic policy expert noted that Moldova's banking system has demonstrated significant improvement in loan portfolio quality in recent years, but certain market segments require increased government attention. He noted that the volume of mortgage loans has grown rapidly and is approaching 30 billion lei, having doubled in recent years. However, the expert warns that this expansion is accompanied by increased risks associated with borrowers' ability to service their obligations. While the banking system remains generally stable (the share of non-performing loans in January 2026 was 4.2%, of which less than 1% were bad loans, a historically low level for Moldova), the level of problem mortgage loans has exceeded the system average for the first time. In January 2026, the overall share of non-performing loans was 4.6%, compared to 1.5% in the same period of 2024. Moreover, approximately 18% of mortgages are repaid late, indicating a deterioration in borrowers' payment discipline. According to Veaceslav Ioniță, there is an alarming increase in the number of citizens unable to service their mortgages for more than three months, and the deterioration in the population's solvency is occurring against the backdrop of economic crises and rising interest rates. To reduce lending risks, particularly in mortgage lending, the expert proposes changing the financing model for the construction sector, shifting the focus from mortgage lending to individuals to lending to construction companies, which have greater financial discipline and risk management capabilities. At the same time, agriculture remains the most vulnerable sector, with the share of non-performing loans here standing at 10.9%. Despite a decline compared to 2024, nearly 58% of agricultural loans are overdue, indicating ongoing pressure on the sector's liquidity. Overall, the expert believes that the stability of Moldova's financial system remains intact, but ongoing risk monitoring and adjustments to financing mechanisms are necessary to maintain long-term stability. // 20.03.2026 — InfoMarket
