Romanian Cos Delay Paying Taxes On Liquidity Shortage - Fin Min

Companies in Romania have liquidity problems, as banks cut their credit lines, and postponed paying their taxes, causing losses of 1.5 billion lei (EUR1=RON3.6838) to the state budget, Economy and Finance Minister Varujan Vosganian said Tuesday.

"We have difficulties in collecting taxes since mid-October, as the banks reduced their credit lines, this problem causing losses of RON1.5 billion," Vosganian said during a round table meeting organized by "Ziarul Financiar" daily.

Raiffeisen Bank president Steven van Groningen said banks are more cautious in granting loans, due to the ongoing international financial turmoil.

According to van Groningen, Romania is now seen as a riskier country, and this leads to higher lending costs.

"Ziarul Financiar" organized Tuesday a round table and invited for talks the leaders of the main political parties and the representatives of the main local companies to discuss about Romania's business agenda for the next four years.

Mediafax