Bad paying clients are more of a headache for banks than for non-bank financial institutions (NBFIs) as past due payments for loans granted by banks went up by 57% in the first five months of 2010 compared with a 7.8% rise for NBFIs, reveal data from the NBR (National Bank of Romania).
In addition, consumer finance companies expect the austerity measures announced by the authorities to have a limited impact on clients' payment behaviour, while bankers expect a quarter of the clients could be affected by the 25% salary cut in the public sector and say they will face another wave of non-performing loans and of restructuring.
At the end of May overdue loans owed to banks amounted to 12.3 billion RON (3 billion euros), accounting for around 5.4% of the overall volume owed. However, the share of overdue amounts recorded by NBFIs has remained at 6-6.5% since January, whilst the share of past due amounts rose by 1.5 per cent in the same interval.
Bad paying clients are more of a headache for banks than for non-bank financial institutions (NBFIs) as past due payments for loans granted by banks went up by 57% in the first five months of 2010 compared with a 7.8% rise for NBFIs, reveal data from the NBR (National Bank of Romania).
In addition, consumer finance companies expect the austerity measures announced by the authorities to have a limited impact on clients' payment behaviour, while bankers expect a quarter of the clients could be affected by the 25% salary cut in the public sector and say they will face another wave of non-performing loans and of restructuring.
At the end of May overdue loans owed to banks amounted to 12.3 billion RON (3 billion euros), accounting for around 5.4% of the overall volume owed. However, the share of overdue amounts recorded by NBFIs has remained at 6-6.5% since January, whilst the share of past due
