Loans must be restarted on healthy grounds, otherwise we risk a new crisisPublish date: 19-02-2010
Crediting must be resumed on healthy grounds at the same time with relaunching the economic growth, especially under the conditions where the degree of indebtness of the population is very high. " Loans do not have to start on unhealthy grounds. We have to make small steps, but constant to resume creditation of the economy, otherwise we could get to another crisis, which will be only ours" Ionut Dumitru said, the head economist of Raiffeisen Bank Romania, in a conference organized by FinMedia.
The fact that the National Bank of Romania made clear the fact that the banks should not be pushed to resume the creditation activity in an aggressive way as it is not healthy,this is very good, Dumitru considers.
« The level of indebtness in Romania is very high on the segment of the population and we have a potential reduced enough of creditation on the side of the population. The service of banking debt of the population as compared to the disposable income is, on average, in Romania 21-22%. If we compare to other states we will see that we have a level above the average. Moreover, if we refer to the people who have debts we will see that this level is 40%" the head economist at Raiffeisen Bank Romania said.
Moreover, besides the reduced potential for creditation of the sector of natural persons, the negative feeling of the consumers in Romania is another hindrance in relaunching the creditation activity.
'The rapid increase of credit in the past consummed almost the whole potential on a short term, existing in Romania. The potential is limited on a short term, but it remains at high level on a long term, but it is conditioned by the resumption of the economic activity" Dumitru says.
Raiffeisen Bank Romania estimates that the advance of the Romanian economy for this year will be approximately 1%.
- Insurance market stagnated in 2013 while GDP chare dropped to 1.3%
- The Romanian Leasing Market as of December 31, 2013
- Millennium Bank reports best results since its launch, helped by stronger banking income and cost cuts
- BCR cheapens First Home loans and lowers interest loans for loans in lei
- Millennium Bank's new Salary account clients receive up to 600 lei bonus and their utility bills' payment
- GarantiBank and Seamless introduce SEQR in Romania: the newest mobile payment solution
- Bancpost telecom services, now provided exclusively by Romtelecom and COSMOTE Romania
- Millennium Bank cards offer discounts in Domo stores
- BCR Supervisory Board reshuffles Management Board
- NBR decide to lower the monetary policy rate to 4.25 percent per annum
- Common appointments in Romtelecom and COSMOTE Romania
- Up to 5.5% annual interest rate for Millennium Bank's promotional three-month lei deposit
- Eurozone in recovery mode but gap between North and South still widening
- UniCredit Tiriac Bank and RBS Romania announce the successful completion of the retail clients' migration
- Millennium Bank grants First House loans in lei