Experts of the IMF and the World Bank will present the research of the non-performing loan portfolio
During the international seminar organised by the Bank of Lithuania together with the International Monetary Fund (IMF) and the World Bank to be held on 12 June in Vilnius, the problems of non-performing loans in the Eastern, Central and South-Eastern Europe will be analysed and the recommendations on the more effective management of such loans will be presented.
“Owing to unreasonably fast growth of the loan portfolio from 2005 to 2008, with the start of the economic recession in Lithuania, our banks, same as those of many other countries, had difficulties related to non-performing loans, which currently comprise around 16 per cent of the portfolio of loans granted. The implementation of recommendations on a more effective solution of the problems related to non-performing loans could contribute to a faster economic recovery in Lithuania”, said Ms. Aldona Jočienė, Director of the Prudential Supervision Department of the Supervision Service of the Bank of Lithuania.
The experts of the IMF and the World Bank will review the key conclusions and recommendations of the international research report in their presentations to the representatives of central banks, financial sector supervisory authorities, finance ministries, ministries of justice and commercial banks from Lithuania, Latvia, Estonia and Sweden, which were invited to the event.
The issues of the non-performing loan portfolio management in various countries were investigated by the working group consisting of the participants of the European Bank Coordination Initiative, which was launched in the beginning of 2009 and is known as the Vienna Initiative. It includes the IMF, the European Bank for Reconstruction and Development, the European Investment Bank, the World Bank, the European Commission, the European Central Bank.