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Bad payers cause Bihor bankers headaches

29.06.2010, 19:32 7

Bankers are facing ever growing problems related to late loanpayments, with the total value of the population's and companies'overdue payments climbing by 44% since the start of the year, inthe context where in some counties their value has registered evena threefold increase. In Bihor county, for instance, overduepayments in May rose to 1.13bn RON, accounting for 18.2% in totalloans granted by the domestic bank subsidiaries, according to NBRdata. Clients' overindebtedness is the main cause that has led tobooming overdue payments in the county at the moment people'sincomes dropped and firms started coping with slumping turnover.Throughout the entire country, the rate of overdue payments in lateMay reached 6.2% from 5.2% in April and 3.8% in December. Bankersexpected the peak of non-performing loans to be reached thissummer. However, the Government's austerity moves are topplingthese forecasts, and bankers are now expecting the loan portfoliodeterioration trend to continue until 2011.

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