​GROWTH OF UNFAVORABLE CREDITS IN BANKS IS DUE TO THEIR INEFFICIENT ADMINISTRATION – EXPERTS

The inefficient management and lack of transparency in structure of shareholders are the main reasons of growth in amount of bad loans in Moldovan banks, says the new issue of the “Moldovan Economy Trends” magazine, published by the National Institute of Economic Researches (INCE) of the Moldovan Academy of Sciences.

Viorica Popa of the INCE said at the Tuesday’s presentation of the magazine issue that the share of bad credits in the Moldovan banking system accounted for 16.11% over the first half-year of 2016, which is 1.67% more than over the equivalent period of 2015.

The worsening of the credit portfolio is the most obvious in banks, which are under special supervision – Victoriabank – by 22.62%, Moldindconbank – by 7.07%, and Moldova Agroindbank – 3.51%.

According to experts, banks are forced to form larger reserves, as well as bear additional expenses for covering the bad loan capital by reserves.