Bernhard Spalt, executive vice-president in charge of risk management at Erste Group, says he allocates the biggest amount of working time to BCR of all subsidiaries of the group.
The BCR's big corporate customers are doing very well, and the level of non-performing loans in the real estate portfolio is comfortable, but pressure on the segment of microfirms and of SMEs will continue over the next quarters, says Spalt, who is also a member in the BCR's Supervisory Board.
He expects the share of non-performing loans in the overall portfolio to continue to rise next year, so the "high" is yet to be reached. The same is true for Hungary.
"In Romania the situation is very mixed on the corporate segment. Big corporate clients have weathered the crisis well, they have sufficient capital, they can export their products, and on this segment the share of non-performing loans is just 3.5%. This will probably be the first customer category to emerge from the crisis. Microfirms and SMEs are the segment hit hardest, they have very little capital reserves, they have no chance of exporting their products and are waiting for liquidity to become available again. (...)The real estate market has become very slow, but the non-performance rate is still quite acceptable," Spalt says, summarising the risk situation of BCR's corporate portfolio.
Bernhard Spalt, executive vice-president in charge of risk management at Erste Group, says he allocates the biggest amount of working time to BCR of all subsidiaries of the group.
The BCR's big corporate customers are doing very well, and the level of non-performing loans in the real estate portfolio is comfortable, but pressure on the segment of microfirms and of SMEs will continue over the next quarters, says Spalt, who is also a member in the BCR's Supervisory Board.
He expects the share of non-perform