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Romania central bank may ask lenders to increase loan provisions
November 14, 2012 / 8:08 AM / 5 years ago

Romania central bank may ask lenders to increase loan provisions

BUCHAREST, Nov 14 (Reuters) - Romania’s central bank may ask some commercial lenders to increase their provisions for bad loans at the start of next year, deputy central bank governor Bogdan Olteanu was quoted on Wednesday as saying.

The central bank is re-evaluating the value of assets serving as collateral for loans, and that assessment may trigger new provision requirements.

“When and where it will be necessary, probably somewhere at the start of next year, it is possible to request new provisions for some banks,” Olteanu was quoted as saying by daily Ziarul Financiar.

He also said non-performing loans in the banking system had reached more than 17 percent of total lending.

Romania’s economy slumped after the global economic crash ended a credit boom in 2009 and it had to take drastic measures under an International Monetary Fund deal, raising taxes and cutting wages to shore up public finances. (Reporting by Luiza Ilie; Editing by Pravin Char)

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