Loan arrears greater than 90 days tripled in one year

In terms of gross value, loans in the “questionable” category almost tripled in Romania in the June 2008-June 2009 period, to RON 15.8 billion. Moreover, in July, the rate of nonperforming loans exceeded 8.7 percent, according to statistics provided by the National Bank of Romania (BNR).

“I expect an increase in arrears greater than 90 days on the retail segment, due to unemployment, but the pace of this increase will slow. Companies will register delays in payments, as financial results in the past few months are unpromising. Arrears will increase by mid-2010 and slide once the economy rebounds,” Ionut Dumitru, Chief Economist of Raiffeisen Bank, said.

A recent report by Deutsche Bank indicated that the increase in nonperforming loans was rather limited in the Czech Republic and Hungary, but could rise to a maximum five percent in the second half of 2010.

For Romania, however, figures put forward by Deutsche Bank were not optimistic, given that nonperforming loans could reach 15-20 percent in the next year.

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