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Romania: Only two or three local banks at risk because of Swiss franc loans

09. August 2011. | 08:53

Source: Agerpres

Just two or three banks operating in Romania face relatively higher risks because of offered loans in Swiss francs, governor of the National Bank of Romania (BNR) Mugur Isarescu told a press conference.

Just two or three banks operating in Romania face relatively higher risks because of offered loans in Swiss francs, governor of the National Bank of Romania (BNR) Mugur Isarescu told a press conference.

"Loans in Swiss francs pose a risk both for the banks and the markets. But in our case the risks are relatively reasonable in comparison with Hungary. Anyway they are not widespread among all banks. We only have two or three banks where these risks are relatively high and we have strongly suggested them to provision these risks. Which they did. They are responsive indeed," said Isarescu.

He added that the portfolio of loans in Swiss francs is much larger and the measures taken by the banks are also related to the nationwide size of the social and financial risk.

"Just some temporary relief occurred there, meaning a debt rescheduling. An upper exchange rate was established and the payable surplus is deposited in a separate bank account and depending on the case, it will be repaid in two or three years. And, speaking of this, my personal belief is that the approach should be individual because maybe someone finds it ill-suited to have to keep servicing a debt at a time when he already gasps for breath under the burden of due payments, just hoping that a miracle will happen and his gains will be higher. Other people might find this less tempting, the more so as this is somewhere at a farther horizon in a future that cannot be definite because that's exactly what future is about. To our knowledge, individual approaches already exist. But reiterating the idea that measures have been taken, that debt repayment has been eased, that I do not know who - the state, the banks or Lord in Heaven - has eased the debt burden, is false," added Isarescu.

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