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Weekly Lists
December 1, 2017 www.intellinews.com I Page 27
bne:Banker Bad loans continue
falling in Central and Southeastern Europe
The burden of non-performing loans (NPLs) in Central and South- eastern Europe has continued to decline, according to the Vienna Initiative, and should continue to do so for the next six months.
The NPL ratio fell 1.5 percentage points to 6.2% of all loans by the end of 2016, with the stock of NPLs falling 18.1% to €46.5bn, repre- senting 3.8% of GDP.
High NPL levels have been a severe problem in both Central and particularly Southeastern Europe since the global financial crisis, weakening banks’ capital strength and hindering them from extending new credits. Ratios have now been falling for three years, though NPLs are still between 10-20% in six of the 17 countries in the two regions.
The highest ratios at the end of 2016 were in Ukraine (30.5%), Alba- nia (18.3%), and Serbia (17.0%). The biggest declines were in Slove- nia (4.9pp), Serbia (4.6pp), Hungary (4.3pp) and Macedonia (4.0pp).
Two years after the $1bn theft from Moldova’s banking system sur- faced, sending the country’s three largest banks into bankruptcy and forcing the government to pay debts of over 10% of GDP, the state is mulling stepping in again in favour of some of the largest banks.
Specifically, the ruling coalition is considering allowing the govern- ment to temporarily take over stakes confiscated from non-transpar- ent shareholders in banks of systemic importance, before selling on the shares, according to Mold Street. The procedure raises questions and could open the door for more costs to be incurred by the state.
The bill is clearly aimed at tackling the situation at the country’s largest banks Moldova Agroindbank (MAIB) and Moldinconbank, where significant stakes, confiscated from non-transparent shareholders, have been for sale over the past year.
Kazakhstan’s largest lender by assets Halyk Bank is looking into the possibility of opening a subsidiary bank in Uzbekistan, Voice of America reported on November 28, citing Umut Shayakhmetova, the bank’s board chairman.
The branch would add to the bank’s existing branches outside of Kazakhstan in Russia, Georgia and Kyrgyzstan. Launching a new office in Uzbekistan would also be in line with the current Uzbek regime’s aims of opening up the country to foreign investors.
Moldova considers further aid for troubled banks
Largest Kazakh lender Halyk mulls opening Uzbek branch