Banks in Bulgaria will start allocating higher provisions to cover impairment loss on substandard exposures and non-performing exposures from April 1, 2004, when the amendments to BNB's Ordinance No. 9 become effective. The amendments were approved by the central bank's government board January 22. Banks will allocate at least 50% provisions on substandard credits, compared to 30% at present. Substandard exposures include credits that have been past-due 60 to 90 days. The provisions on non-performing credits, which will replace the group of doubtful credits, will be 100%, up from the current 50%. Non-performing exposures will be credits that have been past-due more than 90 days. Currently credits are classified as doubtful if they have been past-due 120 days or more. The amendments will also reduce the number of groups of risk exposures from five to four. The current doubtful and loss groups will be united into a new category, non-performing credits. No changes will be made in the watch exposures group, where provisions will amount to 10% of the value of the credits. Exposures are classified as watch credits if they have been past-due 30 to 60 days.