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Romania’s Bks To Notify Insolvent Clients To Ctrl Bk In 2-Days

The Romanian banks should send the central bank BNR, as of next week, information on the clients subject to insolvency procedure, in two working days from the clients' notification.
Romania’s Bks To Notify Insolvent Clients To Ctrl Bk In 2-Days
13 mai 2009, 18:43, English

According to the banking legislation, the central bank may request the commercial banks additional information to the current reports for prudential and statistical purpose.
 
Several bankers told MEDIAFAX that BNR notified them today that starting Monday, May 18, the banks should send data on the clients entering insolvency.
 
"The National Bank finds out very late about insolvency cases regarding large clients. The banks were not compelled to report such data and under current market conditions, such information is much more important," the general manager of BNR’s Surveillance Department Nicolae Cinteza told MEDIAFAX.
 
Cinteza explained the decision mainly grounds on the possibility the central bank analyses with the banks on the adequacy of preventive measures regarding large debtors.
 
End-April, bankers discussed with BNR about amending the insolvency legislation in order to limit the cases in which a creditor could ask for the insolvency of a company for debt non-payment, as the lenders are forced to book provisions or even start the debtor’s foreclosure.
 
Around 14,483 companies entered insolvency in 2008, up 75% from 8,297 companies in the previous year.
 
About 5,173 companies entered insolvency procedure in the first quarter, up 58% compared with the similar period a year earlier, and more than 20,000 companies will find themselves in the same situation by the end of the year, up 40% from end-2008, according to risk management company Coface.