Bankers set up provisions worth almost 1bn RON (236m euros) in June to cover bad loan losses. In the first six months, provisions rose by 4bn RON, to a peak of 20.2bn RON (4.6bn euros), according to NBR data.
Amid the high expenses, banks aggregately registered a net loss at the end of the first half.
Analysts say that as there are no signs of an economic rebound this year, loan portfolios will further deteriorate until 2011, and banks will have to create rising provisions.
"The trend of bad loans follows the trend of the economy and as long as the economy does not entirely regain health, despite some improving indicators, we are not likely to see provisions go down earlier than 2011. We're speaking of quite high uncertainty here, though," comments Lucian Anghel, BCR chief-economist.
At the end of the first half, loans with payments overdue more than 90 days totalled 29.7bn RON (6.8bn euros), up 30% against December. The collateral adjusted value of loans classified as loss stood at almost 18bn RON. According to the NBR norms, these sums have to be entirely provisioned.
Bankers set up provisions worth almost 1bn RON (236m euros) in June to cover bad loan losses. In the first six months, provisions rose by 4bn RON, to a peak of 20.2bn RON (4.6bn euros), according to NBR data.
Amid the high expenses, banks aggregately registered a net loss at the end of the first half.
Analysts say that as there are no signs of an economic rebound this year, loan portfolios will further deteriorate until 2011, and banks will have to create rising provisions.
"The trend of bad loans follows the trend of the economy and as long as the economy does not entirely regain health, despite some improving indicators, we are not likely to see provisions go down earlier than 2011. We're speaking of quite high uncertainty here, though,