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December 10, 2022

Ghetea: Banks interested in agriculture, EU – funded projects

The crediting of agriculture and public administration aimed at putting EU-funded projects into practice remains an area of interest to the Romanian banking system in 2012 as well, Radu Gratian Ghetea, president of the Romanian Banks Association (ARB) and president of the CEC Bank, told a conference on Romania’s economic prospects in 2012, according to doingbusiness.ro. Banks also await the beginning of major investments, Public-Private Partnerships. These elements could define the banks’ crediting interests in 2012. Banks are glad for PPPs to be implemented at the soonest, so that financing comes in,” Ghetea said, who added that there are no other sectors estimated to witness credit resumption.

Also, Ghetea holds that, this year, the real estate sector will just try to keep the flame alive, namely to conclude the developments started already.

In Ghetea’s view, the Romanian banking system is at a crossroads with respect to crediting, mainly given the new crediting regulations that took effect on Feb 1, 2012, which bring even more personal loan restrictions, “while giving more room to legal entities”. In the ARB president’s opinion, this is due to banks’ unwillingness to take more risks, boosted by foreign capital banks’ restraint to increase their risk exposure in the region, including Romania, due to problems of their own.

“Entrepreneurs, too, show some reluctance to take out loans. All in all, crediting has not evolved to the level of giving us the satisfaction that the banking system contributed to economic growth and development as might have been expected, save for the exceptions already mentioned, agriculture and European funds, where competition remains tight given there is an interest considering 4 to 5 banks submit offers in tenders held by companies and local administrations. Unfortunately, other areas are not that attractive,” Ghetea said.

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