“The crisis is already in Romania. We have indirect exposure, given that branches of foreign banks are operating in Romania. The impact of this crisis is already visible, as lending costs rise, both for lei and foreign currency-denominated loans. We will have deficits and long-lasting inflation,” the Manager of Applied Economy Group (GEA) and analyst Liviu Voinea told Business Standard.
Companies operating in fields that require reimbursement schedules in excess of 10 years will find it difficult to borrow money from loan institutions, since banks will be more selective in granting loans, bankers say. “Complex projects that are to be developed in stages will be affected, because these are being carried out at a time when predictability is impossible,” Raiffeisen Bank’s First Vice President, Marinel Burduja, told Business Standard.
Furthermore, “the cost of lending increased, and several banks were asked by their mother companies to no longer grant dollar-denominated loans. On the other hand, investment funds are also facing problems,” said BAC Investment Managing Partner, Matei Paun.
However, investors hope that markets will calm in the medium term, with the General Manager of Aviva Investors Romania, Eugen Voicu saying “it is to be expected that markets will calm down by mid-2009.
