Deutsche Bank: Non-performing loans to continue growth in Romania
The non-performing loans portfolios will continue to grow strongly in Romania and Bulgaria, according to a recent analysis by Deutsche Bank financial group. The two countries lag behind other countries in the region in terms of economic recovery, writes the report. The non-performing loans in Central and Eastern Europe have reached the maximum anticipated levels, but there is still room for a slight increase due to the economic hardship and the increase in unemployment.
In what concerns the Greek crisis, Romania has a low exposure, average for the banking sector and low on the real economy and on capital exits, according to Deutsche Bank. Romania stays in the second risk category, together with Albania, in terms of the banking system – 5 to 15 percent of the GDP. Bulgaria, Macedonia and Serbia have a higher risk (15 to 25 percent), while the rest of the Central and Eastern European countries are in the low risk area, under 5 percent. Romania also has a low level of vulnerability on exports, according to the report.