National Bank RB reports it’s quite probable the financial situation of local enterprises will take a turn to the worse after July 1
It is quite probable the financial situation at those local enterprises, which aren’t able to pay for the credits, taken in the banks, in time, will make a turn to the worse after July1, 2010. The matter is that the preference of the Central Bank of Russia to the commercial banks with respect to problematic credits will be cancelled on July 1.
According to the active norms if the credits aren’t paid back in time, i.e. the quality of these credits become worse, the bank has either to collect the debts or to form the additional reserves for such credits. For the preferential period this mandatory condition was cancelled.
The National Bank RB estimates the volume of such problematic credits at 25%.
“After July 1 those enterprises, which restructured their debts earlier, will have to pay the credits back” – the chairman of the National Bank RB Rustem Mardanov says – “So, if these enterprises show formal profits, in reality these profits are absent: after July 1 these profits will be sent for credit repayments, so in the second half of the year we can expect certain aggravation of the financial situation at our enterprises”.