More than 19% of loans and interest rates registered in banks’ balance sheets were classified as “doubtful” and “loss” at the end of August, a new negative record for the deterioration of banking portfolio quality,” show NBR data.
The loans are the ones for which payment delays of above 60 days
have accumulated and that are becoming ever more difficult to
recoup amiably from debtors.
A year ago, the bad loan indicator stood at 13.3%, already double
the level of late 2008. June had broken the constantly upward trend
of the previous year, but July and August brought new bad loan
peaks, as SMEs coped with rising difficulties in paying back loans
and public sector employees felt the first fallout of austerity
measures.
Irrespective of the definition bad loans are given, the upward
trend in the volume of overdue loans is obvious and there are no
signs it will lose momentum.
Thus, some banks are expected to need additional provisions in the
last part of the year, likely to prompt new capital increase
demands.