After the April leap, the volume of provisions set up by banks hit a new peak, of 25.2 billion lei (EUR6 billion), according to central bank data.
The faster portfolio deterioration seems to be taking bankers by surprise, especially as it comes after a period when loan portfolios appeared to be stabilizing.
Furthermore, the leu strengthened lately, which should have helped clients with debts in euro, while companies should have felt the pressure ease as the economy comes out of recession.
Nevertheless, April brought a RON1.2 billion increase of loans rated as “loss” in banks’ balance sheets, to RON36.2 billion (EUR8.7 billion).