Bank level NPLs — late on payments for at least 90 days — amounted to €4.3 billion at the end of last year, more than twice of €2.2 billion at the end of 2008. Total bank level loans amounted to €72.4 billion, 6.5% less than at the end of 2008, thus bank level NPL ratio more than doubled to 5.9% from 2.8% a year earlier.

In the retail mortgage sector, total loans grew 2.2% to €15.9 billion from €15.6 billion, NPLs more than doubled to €1 billion from €400 million, thus NPL ratio increased to 6.3% from the end-2008 2.6%.

Corporate and non-retail total loans totalled €47 billion at the end of last year, 10.2% less than €52.4 billion at the end of 2008. NPLs in this sector grew to €2.5 billion from €1.4 billion, resulting in a ratio of 5.3% after 2.6% at the end of 2008.

International and local analyses show that the re-start of overall economic growth will not solve the problem of NPLs on the short run, credit portfolios can deteriorate even after economic growth begins, Hungary director of PwC, Gyula Bunna commented. Unemployment still grew in Q1 this year and its impact will show in paying ability with a delay of 6 to 9 months, Bunna said. (MTI-ECONEWS)