The woes of firms facing plunging sales and of people seeingtheir incomes shrink are starting to be reflected in banks' balancesheets as well: sums more than 90 days overdue, and with littlechance of being recovered, leapt by 11% in March alone, hitting7.1bn RON (1.7bn euros). "This is the crisis fallout. The realeconomy is faring ever worse as no concrete supportive step hasbeen taken, and this is reflected in the provisions banks aresetting up. Moreover, some economic operators are protectingthemselves from creditors by filing for insolvency," says IuliuMuresan, vice-president in charge of risk management at Bank Leumi,a small player in the system. He says most companies are havingcash problems, after having seen their sales dive. Sums overduemore than 90 days have climbed by more than three times in the pastyear, from 2bn RON (0.5bn euros) in March 2009. Bankers canpractically kiss this money goodbye and the NBR forces them toconsider there is little chance to get back the rest of the moneythey have to recoup from the respective clients.
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