The sub-prime mortgage crisis is not over, but banks in Romania were less exposed than other European counterparts, Ansola explained. The IMF official noted that how Romania will weather the crisis depends on how banks will react to macroeconomic policies and the way Romanian authorities will manage the vulnerability of the economy.
Analysts previously said America’s mortgage loan crisis will not affect the Romanian real estate or investors active in the industry as prices are not expected to fall owing to high demand and a slew of deals still in the pipeline.
America’s mortgage loan crisis troubled the banking and real estate markets all over the world, prompting Europe’s Central Bank to inject money into the private banking market. Europe felt the effects of the crisis after prices in the real estate sector fell. Latvia reported a 5 percent decrease while Ireland saw prices on the real estate market fall 3.3 percent.
Source: Newsin
