The General Manager of ING Bank’s local subsidiary, Misu Negritoiu, told Business Standard that the crisis is just beginning in Romania. The country will really start feeling its impact in the second half of 2009, and will fully understand it in 2010, according to Negritoiu, a former minister and experienced banker.

The National Bank of Romania (BNR) and the authorities will not help lenders overcome the crisis. Banks are in trouble and exposure in terms of mortgages will cause them grief.

More than 90 percent of local banks are owned by foreign groups.

“Thus, we are importing risks, and we depend on the actions of mother-banks. The banking system itself is an imported one. Austria, Greece and France have the largest exposure,” Negritoiu said. Speaking of BNR measures to counter the crisis, ING’s General Manager added that a recent decision to lower the key rate by 0.25 percentage points, to 10 percent, was symbolic and “has no effective impact on lowering interest rates.” Furthermore, the central bank does not act preemptively.

“We are on the defensive rather than on the offensive (...) Decisions are made only to repair what has been damaged on the market, but we are undergoing a crisis. All these approaches lead to market stagnation, to an expectation stage that is not helpful,” he said.

Another experienced banker, Raiffeisen Bank Romania President Steven van Groningen, told Business Standard that, in order to overcome the crisis, Romania should give clear signals to the international community on the manner in which it will finance last year’s excessive budget deficit, of 5.2 percent of gross domestic product. This is a hot issue in Romania currently, as authorities, most specialists and business people say the country should borrow funds from the IMF, the European Commission or another international institution.

Dan Pascariu, Chairman of the Supervisory Board of UniCredit Tiriac Bank, said that there is an obvious lack of liquidity on the market and this is visible in the level of interest rates. “We are like an asthma patient who, rather than receiving air, feels that the oxygen is cut off, although not completely,” Pascariu said.

For the President and General Manager of BRD-Societe Generale lender, Patrick Gelin, the main problem is a negative perception of Romania, both from international analysts and institutions.

As far as banking system liquidity is concerned, BRD does not agree with other lenders. Bank officials say liquidity is “huge,” but there is no demand for loans on the market.”

Other bankers warned that lenders have so far avoided foreclosure for defaulting clients, but they will start taking action against those who do not pay their debts.