Companies are cautious regarding new financing, and are focussing on covering investments with their own funds or with loans from their mother-companies, according to estimates by company officials, consultants and bankers.
“International banks will have liquidity-related difficulties and, as a strategy, they will cut lending. Banks will stop granting loans within a month. There will be no bankruptcies, as the Romanian banking system is solid, but lending will be severely limited,” according to a declaration for Business standard by former banker Mihail Marcu, now President of Medlife health services company. He added that Medlife has reduced investment plans to a level that can be covered by the company’s own funds.
Consulting company Roland Berger Romania’s Managing Partner, Codrut Pascu, indicated that decisions regarding major investments will be delayed. “The main consequence of higher financing costs is that fewer projects will benefit from financing. As far as multinationals are concerned, those who have financing problems in their core markets will reduce investments on satellite markets, including Romania.” The most exposed areas are real estate, construction, financial services, and consumer goods, added Pascu.
