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NPL Non Performing Loans

Nowotny: Must Avoid Bubble in CESEE

In order to avoid another asset bubble like in 2008, loan growth has to be monitored, governor of Austrian National Bank Ewald Nowotny says.

November 19, 2013

Hungary: NPLs at Record High

The number of NPLs has reached a new record high, according to MNB.

November 18, 2013

Bulgaria: Fiscal Plans “Too Ambitious”

According to the IMF, the underlying assumptions of Bulgaria´s government are not realistic. The banking industry is stable, though.

November 16, 2013

“Bank Aid for Hypo Group Is too Late“

The Austrian economist Franz Hahn argues that capital injections into Hypo Group Alpe Adria are ineffective.

November 16, 2013

Romania: Fitch Rating for Three Banks Affirmed

Fitch has affirmed the ratings for three Romanian banks and forecasts a stable outlook.

November 14, 2013

Austria: Bad Bank For Hypo As Good As Guaranteed.

Chancellor Faymann and Deputy Chancellor Spindelegger are in favor of creating a bad bank for Hypo Group.

November 14, 2013

EU Commission: Slovenia Makes “Key Progress”

Slovenia is among 16 EU member states that require comprehensive assessment of macroeconomic imbalances. According to a report published by the EU Commission, the small country shows significant improvement.

November 14, 2013

Slovenia Creates Major Bad Bank

In order to reduce the burden on the banking sector, Slovenia´s government wants to shift risky assets to a special purpose vehicle.

November 13, 2013

Romania: UniCredit Tiriac Bank’s Profits Exceeding Expectations

On an annual comparison basis, Unicredit Tiriac Bank posted an increase of profits of 48 percent to € 48.5m since the beginning of this year exceeding all expectations.

November 13, 2013

Western Balkans Struggling with NPL

The high percentage of non-performing loans in the Western Balkan region is affecting the financial stability of the region’s countries.

November 11, 2013

BNP Shows Interest in Taking Over Polish BGZ

In the race for the Polish lender BGZ, the biggest French bank BNP Paribas enters the stage.

November 8, 2013

Slovenia Liquidates Two Banks

The Slovenian National Bank has approved a plan for the liquidation of Factor banka and Probanka. The capital shortfall will reach about 400m, according to estimations.

November 7, 2013

Banking Sector Reduces Lending

Instead of offering loans to the corporate sector, banks tend to invest in sovereign bonds. The CESEE region is particularly affected by this.

November 6, 2013

Hungary: Parliament Resolves Bank Act

The Hungarian banking sector, which is dominated by Austrian banks, faces new difficulties.

November 5, 2013

CESEE Region: Booming Exports Prevent Recession

The underlying reason for the improving economic sentiment in the CESEE region is the expanding industrial sector. However, the region remains vulnerable to foreign trade and foreign investments.

November 5, 2013

Slovenia: Banking Act Approved

The Slovenian Parliament has voted for an amendment of the banking act. It is still unclear whether Slovenia is able to recapitalize the banking sector sufficiently.

November 1, 2013

Czech Republic: Consumer Loans Weaken

The Czech loan growth is mainly driven by housing loans. The overal loan structure is improving, the NPL level remains flat.

November 1, 2013

Slovak Banking Industry Records Growing Net Income

In the first nine months of 2013, Slovakia´s banking sector recorded a total net profit of € 449m.

November 1, 2013

Czech Banking Industry Is “Healthy”

According to the Czech banking association (CBA), the Czech banks are well equipped with capital.

October 31, 2013

Austrian Banking Sector: NPL at Eurozone´s Top

In the Eurozone, the non-performing loans are still growing. In total, 7.8% of the loan portfolio is risky. Austrian banks are significantly above the average.

October 30, 2013

IMF on Slovenia: “Cleaning Up Banks is the Priority”

The IMF urges Slovenia to restructure its ailing banking sector. Slovenia faces expensive bank aid-programs.

October 29, 2013

Hungary: Conflict with Banks Sharpens

Hungary´s Minister of Finance Mihaly Varga rejects the proposal submitted by the banking association.

October 29, 2013

Slovenia: Bailout Comes Closer

The ailing country is not expected to manage the financial crisis on its own. Calling for support from Brussels seems to be the last remaining alternative.

October 28, 2013

Hypo Group to Create Bad Bank

After months of considerations, the Austrian government will decide for the bad bank. The nationalized banking group will be a major burden for the state.

October 26, 2013

Hypo Group: Worst Expectations May be Exceeded

For the Austrian state, the ailing nationalized banking group may become a financial GSA. The legal dispute with the former owner BayernLB bears enormous dangers for Austria´s public finance.

October 25, 2013

EBRD Analyzes Slovenia´s Difficulties

From October 21 to 25, a delegation from the European Bank for Reconstruction and Development will visit the ailing country.

October 21, 2013

Bulgaria: FDI Inflow Shrinks Drastically

In the first eight months of 2013, foreign direct investments fell by more than 51%. Without impulses from foreign investors, the country will not return to growth.

October 21, 2013

Croatia: EU-Membership Did Not Help Yet

In the first months of its EU membership, the situation in Croatia´s industrial sector deteriorated further.

October 19, 2013

IMF Warns of Financial Instability in CESEE

Due to the high non-performing loan quota and the deleveraging of Western banks, the countries of Central, Eastern and Southeastern Europe are still far from financial stability.

October 18, 2013

Calculated Optimism in Slovenia

Slovenia´s Ministry of Economics expects a return to growth in the course of next year. According ot economists, this forecast is leading to doubt.

October 15, 2013

IMF: „Banks and Companies in a Vicious Circle“

Not only Greece, Spain or Portugal are struggling with a financially stricken banking sector. In Southeastern Europe, the situation is quite similar.

October 11, 2013

Austria Remains Main Investor in Slovenia

Last year, almost the half of the foreign direct investments in Slovenia came from Austria.

October 11, 2013

Slovenia Cannot Escape the Vicious Circle

Slovenia still aims to manage its banking crisis on its own. After the new economic forecast issued by Slovenia´s National Bank, this aim suffers another setback.

October 10, 2013

Hungary: Easing Cycle Nears Its End

After the interest cut last week, there is still downward potential. However, MNB must be cautious, Hungary´s rate setter Gyula Pleschinger told WSJ.

October 4, 2013

Slovenia: Asset Quality Deteriorates Rapidly

The government of the financially stricken country comes more and more under pressure. In meantime, about 17% of the Slovenian loans are classified as “risky”.

October 1, 2013

Austrian Banking Package: Costs May Reach € 30bn

In total, the burden for Austrian taxpayers is expected to reach up to 10% of GDP.

October 1, 2013

Slovenia: Controversies Over New Budget

Slovenia´s Prime Minister Alenka Bratusek links the approval to the austerity budget to a vote of confidence.

September 25, 2013

Austrian Banking Sector Proves Stable

The U.S. rating agency Fitch confirms the A-rating for Erste Group, RBI (Raiffeisen Bank International), Bank Austria and VBAG.

September 18, 2013

Treichl: Requirements for Banks Increased Massively

According to the CEO of Erste Group, the requirements for banks have increased by three to six times. Moreover it has become harder for banks to finance small and medium sized enterprises (SME).

September 17, 2013

IHS/WIFO: Austrian Hypo Group Needs Bad Bank

Christian Keuschnigg and Karl Aiginger claim that the nationalized Austrian bank should be split into a “good” and a “bad” part. Austria´s public debt would increase substantially.

September 16, 2013

Austrian Banking Sector: Profitability Below Potential

Not only the high NPL quota in the CESEE region, but also the overcapacity in Austria is a burden for the domestic banking industry.

September 14, 2013

Boom in CESEE Will not Return

In the next years, the growth rates of the pre-crisis will not come back in the CESEE region. For the banking industry, the region is still a substantial risk factor.

September 14, 2013

Austria Must Implement Liquidation Mechanism for Banks

In order to minimize fiscal losses, Austrian problem banks should be liquidates soon, IMF claims. In this case, Austria would not reach its fiscal targets in the next years.

September 13, 2013

ECB Worried About Slovenia

The European Central Bank is uncertain whether the financially stricken country will be able to manage its banking crisis.

September 12, 2013

Hypo Group Needs up to € 17bn

The scenarios for the nationalized Austrian banking group become even more pessimistic.

September 12, 2013

IMF: Praise and Criticism for Austria

According to the IMF´s country report, Austria´s main problem is the fiscal situation.

September 11, 2013

Orban on Foreign Banks: „Colonization is Over“

Hungary´s Prime Minister Viktor Orban emphasizes that foreign banks have to pay for foreign exchange loans.

September 9, 2013

Hungary: New Threats for Foreign Banks

Hungary´s government is determined to convert foreign exchange loans at the expense of banks again.

September 6, 2013

Austrian Banks Register Growing NPL

The advisory group pwc has issued a new report on the asset quality of Austrian banks. In terms of asset quality, Hungary and Romania are performing worst.

September 5, 2013

Hungarian Government Wants Further FX Debt Reliefs

The government has talks with the Hungarian banking association. In order to de-burden indebted Hungarian households, Prime Minister Viktor Orban wants to reach a debt relief plan.

September 4, 2013