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Banks in Romania externalized credits of 17 billion euros over 2006-2008
The volume of credits externalized by banks over 2006-2008 amounts to 35% at the end of 2008, BNR sources declared in conditions in which the volume of loans was 50 billion euros at the end of 2008.
The non-governmental credit granted by credit institutions was 198.09 billion lei (49.7 billion euros) at the end of December 2008.The value of the credit portfolio externalized by banks in Romania is 69.3 billion lei (17.4 billion euros).According to data gathered from banks, the volume of loans externalized between 2006-2008 represents about 35% of the stock credit at the end of last year. There are 7-8 banks which externalized credit portfolios, sources told NewsIn.They did not give details about the maturation of externalized loans.Banks chose to externalized important amounts from credit portfolios to avoid a series of costly measures imposed by banking regulations in Romania as well as setting up minimum compulsory reserves for which the level is now 40% of passive stock in foreign exchange for over two years.