Israeli banking regulator asks lenders to reclassify debt of Yes.
Global Banking News - 12 August 2010(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk
The Bank of Israel has asked creditors of Yes (DBS Satellite Services) to reclassify the debt of the company.
Supervisor of Banks, Rony Hizkiyahu has ordered the banks to reclassify the company's debt and increase their doubtful-debt provisioning for Yes. It is believed that the company owes more than ILS0.25bn to Bank Hapoalim (POLI.TA) and Bank Leumi (LUMI.TA). It is also significantly indebted to other banks in the country.
Even though banks have classified Yes's debts as 'debts under supervision,' which allows them to set aside one per cent of the total loan as provision, the central bank is not happy with it and wants more to be allocated to provisions.
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