More than 19% of loans and interest rates registered in banks' balance sheets were classified as "doubtful" and "loss" at the end of August, a new negative record for the deterioration of banking portfolio quality," show NBR data.
The loans are the ones for which payment delays of above 60 days have accumulated and that are becoming ever more difficult to recoup amiably from debtors.
A year ago, the bad loan indicator stood at 13.3%, already double the level of late 2008. June had broken the constantly upward trend of the previous year, but July and August brought new bad loan peaks, as SMEs coped with rising difficulties in paying back loans and public sector employees felt the first fallout of austerity measures.
Irrespective of the definition bad loans are given, the upward trend in the volume of overdue loans is obvious and there are no signs it will lose momentum.
Thus, some banks are expected to need additional provisions in the last part of the year, likely to prompt new capital increase demands.
More than 19% of loans and interest rates registered in banks' balance sheets were classified as "doubtful" and "loss" at the end of August, a new negative record for the deterioration of banking portfolio quality," show NBR data.
The loans are the ones for which payment delays of above 60 days have accumulated and that are becoming ever more difficult to recoup amiably from debtors.
A year ago, the bad loan indicator stood at 13.3%, already double the level of late 2008. June had broken the constantly upward trend of the previous year, but July and August brought new bad loan peaks, as SMEs coped with rising difficulties in paying back loans and public sector employees felt the first fallout of austerity measures.
Irrespective of the definition bad loans are given, the upward trend in the volume of overd