Illiquid assets such as unlisted shares and other stocks prevail in Romanians’ financial asset portfolio with a 47% share, compared to 16% in Poland and 5% in Germany, BCR said in a report.
In 2011, about one third of Romanians faced severe poverty. The elderly are more exposed to poverty than people below 65.
According to the report, only 9% of Romanian retirees can afford to go on a one-week holiday once a year, compared to 76% in Germany.
BCR analysts believe that authorities should focus more on developing those economic sectors that may reduce poverty rather than grant social aid.
BCR economist Eugen Sinca highlighted that the saving and investment process in Romania was seriously affected in the 1990s by high inflation, people’s lack of trust in investment funds following famous bankruptcies, by a poorly developed stock exchange and the tardy entry into Romania of life insurance companies and private pension funds.