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May 25, 2022

Georgescu, BNR: Greek banks have solvency over 11 pc and contingency plans

Florin Georgescu, First Deputy Governor of the National Bank of Romania (BNR), stated that the Greek banks present in Romania have a solvency level of over 11 per cent, a comfortable level of liquidity and contingency plans in order to maintain their financial solidity, Mediafax informs. He pointed out that BNR’s Supervisory Department is carefully monitoring the Greek banks’ situation. On the other hand, Georgescu also talked about private sector crediting and stated that household and corporate loans can grow by 7 per cent.

“The outlook is favorable. As the growth of loans granted by the government slows down there is room for loans granted by non-government institutions to grow by 7 per cent in nominal terms in 2011,” the BNR official added. He pointed out that the loans granted by non-government institutions registered drops in real terms in 2009 and 2010. At the same time, Georgescu stated that the share that public sector loans hold in the banks’ assets grew from 5 per cent in 2008 to 16 per cent in March 2011, while the share of household and corporate loans dropped from 29 to 26 per cent and from 29 to 28 per cent respectively.

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