Clear policies essential in Romania to avoid a "subprime" crisis

"The US mortgage crisis demonstrated that there is no perfect housing financing system," said Bejan. "In the case of Romania we must be conscious that problems linked to savings must not be treated marginally," said Bejan during a seminar entitled "Residential Market: Decline or Manipulation? Challenges and Risks in 2008," organized Tuesday by Business Standard.

According to Bejan, the US mortgage credits crisis was generated by an accumulation of risk on variable interest loans, granting loans to insolvent individuals, and offering financing of up to 100 percent for the construction of new homes.