BCR: Corporate NPLs To Increase On Short Term

05.09.2011 By Florentina Dragu

Romanian retail non-performing loans have stabilized below 20% of the total loans, unlike the corporate sector, where the situation is set to worsen further before it can enter a downward path once the economy recovers, the head of Banca Comerciala Romana (BCR) said Monday.

"The accumulation of new NPLs has slowed down, supported by stabilization in the retail sector (…) I expect overall NPLs will start to decline," said Dominic Bruynseels, chief executive officer of BCR.

Bruynseels said retail NPLs stand at 19.3% of the total loans in the sector.

"Corporate NPLs are likely to increase. We estimate a gradual recovery, but only after economic growth accelerates," he added.

BCR's chief said the bank invested EUR225 million in three-year state bonds last week, of which EUR25 million came from customers.

On May 4, the Finance Ministry sold debt worth EUR939.2 million in foreign paper, at an average yield of 4.89% a year.


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