Lazea: European states will no longer tolerate debt-fueled rise in standard of living

Romania has one of the highest current account deficits in Europe, so that the resumption of crediting at pre-crisis levels will no longer be possible, especially since European states no longer tolerate a debt-fueled rise in the standard of living, Valentin Lazea, chief economist of the National Bank of Romania (BNR), stated for Mediafax. He pointed out that Romania’s current account deficit dropped in recent years from approximately 13 per cent to 4-5 per cent, however even against this backdrop its current level is among the highest in Europe, behind the levels reported by Greece, Portugal and Turkey. “Countries in Europe will no longer tolerate a debt-fueled rise in the standard of living. If anyone thinks that pre-crisis crediting will return he should forget about it,” Lazea added during a seminar on bad credits. He pointed out that given the fact that the room for household crediting is limited the banks should reorganize and turn towards loans for production activities and infrastructure.

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