Companies' plummeting sales, the overall financial crunch inclusively generated by the shortage of loans and the population's diving incomes were reflected in the skyrocketing overdue sums in the account of outstanding loans banks registered in 2009. Thus, the amount of overdue sums climbed almost three times, to 1.84bn euros.

Whereas in 2007 more than half of overdue sums came from consumers, at the end of last year the situation had radically changed: two thirds of instalments not paid in time were in companies' accounts.

"I believe the peak of bad loans will come as late as toward yearend, not earlier. Yet, the growth pace will slow down," says Nicolaie Alexandru-Chidesciuc, chief-economist of ING.

Bankers are forced to set up provisions and reclassify loans when they see that a client is late in paying instalments. If more than three instalments are not paid, the bank needs to consider chances to recoup sums from the client as minimal and the NBR demands that the entire loan granted should be classified as "loss" and entirely provisioned.

Thus, bankers in November last year came to include loans of above 5bn euros in the "loss" category, compared with 2bn euros in late 2008.

The huge provision expenses were reflected in banks' profitability, with the net cumulated income of all players on the market falling to 190m euros, from an all-time high of 1.2bn euros in 2008.

Chidesciuc believes overdue sums will be higher this year particularly on the individual segment, given the massive layoffs announced in the public sector.

He says firms will start benefiting from the economic revival this year, but will operate further headcount cuts to boost operational costs.

Loans granted to companies have been the hardest hit in the past two years, with the value of overdue sums rising more than eight times from late 2007 to late 2009