Bank data shows that calculated under local standards, provisions represented 12.8% of the lending portfolio at the end of 2011, which means RON2 billion. Calculated under international standards, provisions stood at 8.3% of the portfolio, namely RON1.31 billion.
Romania’s central bank recently asked lenders to report the differences obtained in calculation by international and local reporting standards at the end of January this year.
According to central bank data, the banking system has significantly improved its provisioning rate when switching to international standards, freeing up about a third (EUR2.3 billion) of the provisions calculated and created under local standards.
At the end of 2011, UniCredit’s loan portfolio stood at RON15.9 billion, including RON10 billion in corporate loans. (EUR1=RON4.3737)