Economist: There’s “Hole” Of More Than Three Billion In Belarusian Banking System
- 24.10.2016, 12:56
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The distressed assets of the Belarusian banks top record levels.
According to the businessForecast.by calculations, in case the Belarusian banks have formed special provisions in the amount of 100% of the distressed asset value, the domestic banking sector would have recorded a loss in the amount of minus 3.265 billion rubles instead of the declared profit of 462.4 million rubles in January-August 2016.
The experts calculated those “distressed assets,” which are sometimes called the money buried in the ground – to finance the village, which, as a rule, does not give credits back, to credit failed investment projects and practically impaired enterprises. Simply said, they are the assets that are unlikely to ever return to the banks.
– However, to make it clear, we are talking about an extremely negative scenario in this case, –economist Aliaksandr Mukha says, – in which all the distressed assets of the banks are, in fact, irrevocable and require special provisions on a full scale (that is in the amount of 100 % of the distressed asset value). In fact, the quality of the banks' distressed assets varies.
It varies, but, it seems, not enough to mend the “hole” of 3,265 billion rubles.