Provisions slow down: monthly growth, no higher than half a billion lei

The monthly growth pace of provisions started to slow down from the fourth quarter of 2010, and February brought bankers a new breath of fresh air.

Thus, bankers’ expectations for the provisioning effort to ease up gradually during this year are confirmed.

However, despite the slowing advance, the provision stock is still setting all-time peaks from one month to another. In February, it reached 24.3bn lei (5.8bn euros), accounting thus for 11.9% in overall loans granted to clients outside the banking sector.

“The cost of risk has stabilised on the corporate segment, but unfortunately not for mortgages, as well. Provisions skyrocketed after the adjustment moves the government made last summer, but they are now stabilising. On the SME segment, bad loans have stopped rising,” says Laszlo Diosi, OTP Bank head.