Vaduva: The main problem is not knowing the real demand

 Romania is facing the second type, because a large portion of the economic growth in this country was generated by consumption, which increased artificially, aided by lending,“ the CEO of Ţiriac Holdings, one of the largest local companies in terms of net sales, told Business Standard yesterday. Blocking lending led to a downturn in consumption, in demand, to new lows in Romania. This is the reason why companies cannot make proper forecasts regarding their businesses in 2009 and the coming years. „I cannot now say what the true level of demand is. This is why we are working with several budgets, quarterly, monthly, or even weekly. Do not underestimate the volatility of the situation,“ said the crisis manager. Vaduva added that the market could bounce back in November. Until then, Ţiriac Holdings will be subject to a restructuring process which, however, will not include outsourcing or division sales. According to the company official, the auto division will end the year with a 40 percent drop, in an optimistic scenario, while the division least affected by the crisis will be the insurance segment.