A third of loans for SMES are used for investments

About one third of loans (31.5 percent) are used for investments in equipment while 9.64 percent are real estate asset loans, according to data from the National Bank of Romania (BNR).

While a major portion of treasury loans are used by companies for running costs, a separate category in BNR’s statistics indicates that a mere 1.08 percent of loans for SMEs are intended for running costs, because this type of loan is granted based on other banking norms.

According to Florin Georgescu, Vice Governor of BNR, 14 percent of SME loans are granted by banks, but this segment has significant potential.

“Banks are increasingly targeting SME financing, which makes up 63 percent of all loans accorded to companies. If credit risk increases and the conditions of international liquidity become more restrictive, it is possible that this trend will slow down,” added Georgescu.

BNR’s Vice Governor indicated that companies borrow mainly from outside Romania, including their mother company.