Austrian-held Volksbank has got loans in Swiss francs worth theequivalent of 1.3 billion euros in its balance sheet, which accountfor around half the overall loans granted in this currency on theRomanian market. The bank is therefore exposed to the problemsgenerated by the franc's dramatic appreciation against the RONrecorded over the last two years, by 45%, which translates in asimilarly heightened payment effort on the part of clients.
Volksbank used the alternative of franc-denominated loans, whichhad the advantage of displaying very low nominal interests in orderto facilitate the fast growth of real estate loans of the pastyears. At the end of last year, these loans accounted for 44% ofthe bank's overall financing portfolio, of 3.1 billion euros,according to data published in the Annual 2009 Report. Another 50%of the financing was in euros.
Around 83% of loans granted by the bank were retail loans, and weremainly real estate loans. Corporate loans totalled 500 millioneuros, almost half of which were granted to real estate companies.Over the course of last year the volume of loans fell by 14%, from3.6 billion euros in December 2008. At the end of March 2010, theshare of loans rated as doubtful and as loss had climbed to around22% of overall loans, according to a report published by theVolksbank group in Vienna, from 18% at the end of 2009.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
