BUSINESS

Growth in bad loans puts Romania first

Romania tops a Pricewaterhouse Coopers (PwC) 13-nation table that measures the growth rhythm in bad loans last year, Mediafax informs. Romania is in a tie with Hungary, both reporting a growth rhythm of 67 per cent. Bad loans in Romania totaled EUR 5 bln last year, a level similar to the one reported by Hungary and the Czech Republic, in contrast to EUR 3 bln in 2009, the report shows. On the other hand, Romania’s, Hungary’s and the Czech Republic’s bad loans have the lowest levels value-wise.

In Romania’s case PwC considers, on the basis of National Bank of Romania (BNR) data, that the share of bad loans surpassed 10 per cent of total loans last year, compared to 7.8 per cent in 2009 and 0.32 per cent in 2008. PwC estimates that the default rate will continue to rise since loans were traditionally offered on permissive criteria. Germany had the highest value of bad loans (EUR 225 M, up by 7 per cent), followed by Great Britain (EUR 175 M, up by 13 per cent) and Ireland (EUR 109 M, up by 24 per cent). Turkey reported no growth in its bad loans.

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