Mother banks request that their Romanian subsidiaries return loans ahead of time

 

Coface assigned Romania an “A4-” rating for January and “A4” for the entire year 2009, which indicates a mediocre history of payments. The rating could drop further if the economic environment deteriorates.

The company is forecasting two percent economic growth this year, computed based on a 6.3 percent inflation rate. Moreover, Coface expects a budget deficit of a mere 2.1 percent, and a 10.5 percent current account deficit.

The economy is slowing abruptly because the three growth engines of the past three years – private consumption, construction, and foreign investments – have contracted sharply.

However, according to Ionescu, a crisis lasts between 18 and 24 months, and the current crisis began in January 2008.