Credit Paradox in Romania. Cosmin Marinescu, Vice-Governor BNR: "More Money for the State, Less Money for the economy."
12 Articles
12 Articles
Romania is the last in the European Union (EU) under the heading of loans granted to the economy. They represent only 40 percent of the Gross Domestic Product (GDP), much below the EU average - 106 percent. When the state spends and borrows more, interest increases, and the private sector invests less, explains the doctor in the economy Cosmin Marinescu, vice-governor of the National Bank of Romania (BNR). Article Romania, Europe's code for loan…
Romania has the lowest level of financial intermediation in the European Union: the loans granted to the economy represent 40% of GDP, compared to a European average of 106%. Although Romanian companies are among the most indebted, most of their financing comes not from the banks in the country, but from loans within the groups and from delaying the payments of invoices. At the same time, the larger loans contracted by the state reduce the money…
Romania is in an apparently contradictory situation: it has the lowest level of financial intermediation in the European Union, but Romanian companies are among the most indebted. According to Cosmin Marinescu, vice-governor of the BNR, the explanation is that companies finance themselves to a small extent through banks and IFNs and make much more use of commercial credit and intra-group loans.
The loans granted to the economy represent only 40% of GDP in Romania, compared to 106% in the European Union, while the companies rely increasingly on loans from within the groups and on the postponement of payments to suppliers. Vice-Governor BNR Cosmin Marinescu warns that the state's increasing loans put pressure on interest and limits access to finance for investments.
For every 100 lei produced by the Romanian economy, the loans granted to the population and companies amount to only 40 lei. At EU level, the average is 106 lei. The difference places Romania last in the EU in terms of financial intermediation, while the state's larger loans reduce the resources available for private investments. [...] Article The state takes an increasing share of the bank's money. What happens with the financing of companies a…
For 30 years, since we have a banking system again, Romania has been consistently in the last place in Europe in terms of the degree of banking, i.e. the level at which people and companies access banking products and services. Economists [...]
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