Loan Provisions Up 40.5% In 2009 To Over 10 Bln RON

Tradus de Andrei Năstase
Ziarul BURSA #English Section / 1 iulie 2009

Ana Săbiescu

Provisions made by commercial banks operating in Romania gained 40.5% in the first four months of the year to 10.63 billion RON, of which 8.66 billion RON for loans that had already been booked to the "Loss" account, according to information released by the National Bank of Romania (BNR) yesterday. By the end of 2008, banks had created provisions in the total amount of 7.58 billion RON, of which only 5.64 billion RON was linked to loans that had been booked as "Loss."

Compared to the previous month, April 2009 brought a 3.7% increase in the total amount of provisions created by banks in Romania, from 10.25 billion RON. Compared to end-April 2008, when the total sum of provisions was only 4.62 billion RON, the increase is a hefty 130%.

From a structural point of view, of the total amount of provisions created by 30 April 2008, 81.45% was for "Loss," 5.5% for "Doubtful" loans, 4.06% for "Sub-Standard" loans, 4.37% for "Under Monitoring" and 4.69% for "Standard" loans.

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