The National Bank of Romania will probably demand some banks to increase their provisions starting next year, deputy governor Bogdan Olteanu said, quoted by Money.ro. The new provisions will be decided after the reevaluation of the guarantees deposited for the loans granted by banks, Olteanu added during a conference held in Bucharest. BNR demanded commercial banks to reevaluate the value of their guarantees for the loans extended before the advent of the financial crisis. The value of assets was strongly affected – especially over the last two years – and it must be correlated with the current market value. “We are now revising the values of guarantees and, where necessary, probably at the beginning of next year, we will demand the creation of new provisions,” Olteanu mentioned. At the present moment, bad loans account for 17 pc of the total credits extended by the banks that operate in Romania, he added.
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