RZB: Unemployment growth in CEE will affect also Romania

The sensitivity of Ukraine, Romania and Hungary to the depreciation of the national currencies in relation with the Euro and the high degree of indebtedness in foreign currency determine a marked vulnerability of the assets from the financial systems of these countries, warns RZB, the majority shareholder of Raiffeisen International, which is present also in Romania.

The deterioration of the economic conditions and the volatility from the foreign currency markets have conducted to the significant growth of the number of bad credits from RZB portfolio, determining the group to set up provisions for the deterioration of the assets of EUR 1.267 bln in the first half of this year, against EUR 200 M in the same period of 2008. "The badly performing credits have affected the group in all the segments, but the most important negative effects were felt by the operations from Ukraine, Russia, Hungary and Romania," reads the quoted report.

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