“There are presently no medium and long-term funds, which is affecting the capacity of banks to grant loans for investments. These will plunge, but the financing of working capital lines will continue in the coming year. We will witness some sort of economic Darwinism and banks will have to choose winners and the losers,” said Dan Pascariu, President of the UniCredit Tiriac Bank.
“Bankers are currently evaluating investment projects of companies with measuring tools that differ from those existing one year ago. Land and mortgage collaterals are no longer valid,” said Radu Ghetea, President of CEC Bank.
According to Tiberiu Urdareanu, only profitable companies, which produce added value, and have a sustainable business, will survive the crisis.
“We cannot function without money. But this is what the crisis is all about: there will be fewer of us on the market by the end of 2009. Sales will drop, some will disappear from the market,” said Octavian Radu, founder of the RTC group.
What is happening to lending in Romania is strictly related to the international context, explained Steven van Groningen, President of the Raiffeisen Romania bank. “The Romanian banking system no longer has access to financing, regardless of BNR [the National Bank of Romania] regulations,” said van Groningen.
According to Radu Craciun, Investment Manager of Interamerican Pensii, the crisis can be an opportunity for launching the corporate bond market as an alternative source of financing, considering banks no longer have liquidities. “Every month, €30 million enter the private pension system. We are the most liquid sector in the financial system,” Craciun added.
