Nonperforming loans are on the rise again

Bad loans started to rise in the first quater of the year, showing a significant worsening of the situation after a long period of improvement.

Bank officials estimate that in the January-March 2015 period, nonperforming loans increased by 60 to 70 basis points to rise from 34.4 percent in end-December to about 35 percent in end-March.

This growth is attributed to the uncertainty that has prevailed in past few months, the government’s inability to reach an agreement with creditors and the cultivation of borrowers’ expectations for more favorable payment plans.

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