IMF worried about rise in NPL

The main risk source for Romanian banks is the credit risk derived from fluctuations of the ROL exchange rate and of the interest rate to which the corporate sector is subjected, as shown in a stability assessment of the Romanian financial system released by the IMF. Although it would not suffer that much in the event of a severe ROL depreciation, the increase in non-performing loans (NPL) would make a considerable impact on the banking system, adding to the impact of the reduction in the spread between lending and deposit rates that would cut into the profits of the banks. IMF anticipates an increase in NPL as a result of the powerful crediting expansion. In case sharp capital outflows occurred and induced a 20% ROL depreciation and 10% interest increase, the banks would not take a direct hit. ZF

TITL: Parliament wants luxury affordable

Parliament has decided to boost imports of luxurious goods such as yachts, motorboats, guns used for hunting, and guns for individual use, VCRs, digital cameras and certain types of cars by lowering the excise level initially set in the Fiscal Code draft. This comes right after the Government had announced it was planning to increase excises on luxurious goods to reduce the trade deficit. The MPs on Wednesday agreed on the final version of the Fiscal Code. This version stipulates that excises for yachts and motorboats used for leisure will be 25%, with excises on guns used for hunting and on guns for individual use reaching 50% instead of the 70% as initially set by the Chamber of Deputies. Excises on video players or recorders, audio racks or stereos were set at 15% instead of the proposed 20%. ZF