The amount of money Romanian banks set aside for bad loans increased in October by 7% to 13.8 billion lei (€3.2 bln), after a short stagnation in the September. However, the number of borrowers in default fell for the first time in seven months, according to the National Bank of Romania.
Banks’ bad debt reserves advanced by only 0.3% in September to 12.89 billion lei (€3.07 billion), after a monthly growth rate of 6.5% in August.
In the Jan-Oct 2009 period, banks set aside collectively 81.6% more than 7.6 billion lei in 2008.
In October, loss loans provisions totalled 11.83 million lei (€2.75 billion) or 85.7% of the banks’ impairment charges.
