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Fri, Feb 10 2012
Bulgarian banks write down 1.8B leva as losses in January-September
Photo: Julia Lazarova
Loans written off as losses by Bulgarian banks rose to 1.843 billion leva in the first nine months of this year, central bank figures showed.
The figure includes non-performing loans that have not been serviced in more than 180 days, which accounted for 3.55 per cent of the banking system's portfolio. Third-quarter write-offs stood at 517.8 million leva.
Loans with more than a 30-day delay have surged by 1.41 billion leva to 6.12 billion leva, or 8.53 per cent of the banking system assets.
Bulgarian banks have sufficient capital and have accumulated sufficient buffers to guarantee their safety in the case of a further deterioration in asset quality, according to the Bulgarian National Bank.
The capital of Bulgaria’s banking system stood at 9.2 billion leva at the end of September, an increase of 375 million leva for the second quarter. The capital adequacy ration was 17.34 per cent.
Stress tests on Bulgaria’s banking system unveiled in August showed that bad loans could climb to 16.5 per cent of the banking systems loans portfolio. Capital adequacy would fall in the range of 14.5 per cent to 11.6 per cent, comfortably above the EU and US regulatory requirements of eight per cent.
Source: Dnevnik
The figure includes non-performing loans that have not been serviced in more than 180 days, which accounted for 3.55 per cent of the banking system's portfolio. Third-quarter write-offs stood at 517.8 million leva.
Loans with more than a 30-day delay have surged by 1.41 billion leva to 6.12 billion leva, or 8.53 per cent of the banking system assets.
Bulgarian banks have sufficient capital and have accumulated sufficient buffers to guarantee their safety in the case of a further deterioration in asset quality, according to the Bulgarian National Bank.
The capital of Bulgaria’s banking system stood at 9.2 billion leva at the end of September, an increase of 375 million leva for the second quarter. The capital adequacy ration was 17.34 per cent.
Stress tests on Bulgaria’s banking system unveiled in August showed that bad loans could climb to 16.5 per cent of the banking systems loans portfolio. Capital adequacy would fall in the range of 14.5 per cent to 11.6 per cent, comfortably above the EU and US regulatory requirements of eight per cent.
Source: Dnevnik
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Stefan Apostolov is the new chief executive of CEZ Razpredelenie Bulgaria, the power transmission subsidiary of Czech energy company CEZ in the country. He replaces interim chief executive Ales Damm, who remains the chairperson of the CEZ Razpredelenie management board. Apostolov has 30 years of experience in the energy sector, joining CEZ in 2007 as director of customer service and was later appointed as head of business development. Apostolov has a master's degree in electric systems from the Belorussian National Technical University in Minsc, management diplomas from Open University London and New Bulgarian University, as well as a master's degree in business administration from Plovdiv University.
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So now 1.8 billion has been written off yet how many distressed assets are we seeing making their way onto the market be it in auction or sale through recognised agents or through the banks that have now got a responsibility to at least recover some of their loss?