The level of bad loans in Polish banks haven’t been been so high since 2004, according to a Puls Biznesu report. According to UniCredit, the number of bad loans increased at the end of 2012 to 7.9 percent, up from 7.3 percent in 2011. Analysts, however, are remaining calm, saying the level is still low. But the situation is expected to get worse for banks. UniCredit estimates bad loans will increase by 1.7 percent this year, reaching 8.5 percent by the end of the year.
“Although the number of non-performing loans is rising, the Polish financial sector is safe,” said Tomasz Kaczor of Bank Gospodarstwa Krajowego.
