Saturday, November 8, 2008

Intesa Romania, CEB Romania Suspend Euro Loans, Financiar Says

By Adam Brown

Nov. 7 (Bloomberg) -- Intesa Sanpaolo Bank Romania SA and Credit Europe Bank Romania have temporarily halted lending in euros on concern about repayment, Ziarul Financiar said.

The leu's loss of more than 9 percent against the euro and mounting foreign-currency debt loads have raised the risk that clients won't be able to repay the loans, forcing a temporary halt to euro-lending, the newspaper said, citing unidentified officials from Intesa Romania and other unnamed banking industry officials.

Overdue private debt in Romania more than doubled in September from a year earlier, led by increases in late payment of foreign-currency loans, the central bank said on Nov. 5.

To contact the reporter on this story: Adam Brown in Bucharest at abrown23@bloomberg.net

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