“The large volume of foreign currency loans extended to SMEs, most of them unprotected against fluctuations of the exchange rate, will likely trigger measures aimed at expanding our regulatory framework concerning forex lending to include all unprotected debtors, including SMEs,” the central bank said in its 2012 financial stability report.
The new measures, similar to the ones introduced for household clients in 2011, would be in line with recommendations made by the European Systemic Risk Board, or ESRB, the report noted.
Last year, the central bank announced a series of regulations to reduce bank lending in foreign currency for households, after non-performing loans in the sector had risen alarmingly.
According to central bank data, non-performing loans in the SMEs sector rose from around 15% at the end of 2010 to 23.2% in July this year, as companies have been having difficulties in finding resources to repay their loans due to adverse economic conditions.
“SMEs receivable collection has stabilized in 2011, but it remains at high levels, with an average period of 119 days, compared with 117 days in 2010,” the report said.
As to the corporate sector as a whole, the central bank estimates the level of non-performing loans will peak in the coming period. NPLs in the sector rose to 17.6% in June, from 12.3% in December 2011.
However, bank provisions are expected to increase at a slower rate in 2012 compared with the previous year, the central bank said.