“Rating agencies have always criticized us for having a high short-term debt. This downward trend of short-term loans is normal, because BNR eliminated the cash reserve ratio for foreign currency liabilities with residual maturity exceeding two years,” the Chief Economist of Banca Comerciala Romana, Lucian Anghel, told Business Standard.
Companies, especially those producing goods with high added value, prefer foreign financing to local loans, and usually short-term loans. However, due to the economic downturn, they may decide not to renew their credit lines. “Companies preferred to borrow abroad, because it was more advantageous. At present, companies are no longer interested in investing, which will lead to a drop in foreign loans,” Anghel added.
