Due to debts and loans contracted in previous years, Elcen does not have access to other financing. “Clearly, the emission certificates are an effective way of financing. The condition is that they meet the parameters considered normal on the financial markets in the field,” said Matei Paun, Managing Partner of BAC Investment. Radu Zaciu, Country ...
Practically speaking, almost one in six loans could become nonperforming. UniCredit indicates that the NPL ratio amounted to 11.3 percent in Romania at the end of the second quarter. Of the European Union countries in the region, only Latvia and Lithuania are expected to register higher rates than Romania.
“From October 2008 to July 2009, lending froze in Romania. However, we have lately witnessed a slight rebound. It is very likely that this trend continues in the first half of next year, but we must not say that the current crisis is over, and banks must remain cautious, especially after lending is resumed,” the ...
In terms of gross value, loans in the “questionable” category almost tripled in Romania in the June 2008-June 2009 period, to RON 15.8 billion. Moreover, in July, the rate of nonperforming loans exceeded 8.7 percent, according to statistics provided by the National Bank of Romania (BNR). “I expect an increase in arrears greater than 90 ...
The message of banks is clear: “Money is still expensive, risks are still great, so you have to pay more.” High risk margins has driven up the price applied by banks to unsecured loans, cancelling any announced declines in interest rates, and even exceeding such cuts.
Analysts say that the reasons for this huge rise include the strategies of lenders, who attracted their clients with promotional offers, then raised the interest rate due to the crisis affecting the banking system, but also because debtors were subject to currency risk. “Arrears on loans in other currencies have risen, because this is a ...
IMF was to approve yesterday the second letter of intent signed with the Romanian state after assessing the country’s economy in August, and release the second tranche of the some €13 bln two-year loan. The €1.9 bln will be split equally between the reserves of the National Bank of Romania and the state’s Treasury for ...
“A wave of bankruptcies, generated by the refusal of banks to refinance companies that have proven they are unable to bounce back, will come at the end of this year or the beginning of next year. Until now, these have rescheduled and restructured loans, but this cannot go on forever,” said Arin Stănescu, the head ...