Credit Insurer Euler Sees More Bank Writeoffs-Report

AMSTERDAM (Reuters) - Banks will write off more credit assets but global economic growth will not suffer substantially from the credit crisis, the head of the world's biggest credit insurer Euler Hermes (ELER.PA: Quote, Profile, Research, Stock Buzz) told a Dutch newspaper on Friday.

"Banks will try to write down weak investments this year so they can start clean in 2008. These blows will become visible in the next few months," Euler Hermes Chief Executive Clemens von Weichs told Dutch paper De Telegraaf in an interview.

U.S. and European banks have written off billions of dollars worth of credit assets as defaults on U.S. subprime mortgages -- loans to home owners with poor credit records -- led to lower valuations of certain credit related assets.

Global economic growth would perhaps slow down a bit but not dramatically due to strong growth in emerging countries, said the CEO of Euler Hermes, which is a unit of German insurer Allianz (ALVG.DE: Quote, Profile, Research, Stock Buzz).

Weichs expected the world economy to grow about 3 percent in 2008, while the U.S. and European economy will each grow about 2 percent. Leading economies in Eastern and Central Europe, Asia, and Latin America will grow almost 10 percent next year.

(Reporting by Gilbert Kreijger; Editing by David Cowell)