The accumulation of loans registered as "loss" because debtorcompanies have no chance of recovery has seen banks complain that"the removal" of debts "from the balance sheet" is burdening themwith unnecessary costs, which "artificially" worsen theirimage.
The solution cited again is to switch to the internationalfinancial reporting system (IFRS) - already used in parallel bymost banks, but the switch will not occur before 2012, according adecision by the NBR and the Finance Ministry and committed to inthe arrangement with the IMF.
"IFRS allows for loans to be removed from the balance sheetunder conditions set by the bank based on economic reasons: costs,probability of recovering the money. At present you have to keepthe loans in the balance sheet, and allocate provisions, until alllegal ways to recoup the money have been exhausted, even if youknow that the probability of recovering the money is zero.Switching to the IFRS would help "clean up" balance sheets ofnon-performing loans and unnecessary costs," said Vladimir Kalinov,executive vice-president of Raiffeisen Bank, in charge of the Riskdivision.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
