Speaking at an economic seminar, first deputy governor Florin Georgescu said the solvency ratio of local banks with Greek capital is above 11%, adding that the central bank is keeping a close watch on the situation.

On a separate note, Georgescu said private lending on the local market is likely to increase by 7% in nominal terms in 2011.

He said government lending has increased to 16% of total lending in March this year, from 5% at the end of 2008. Additionally, consumer and corporate loans fell from 29% of total to 26% and 28%, respectively.

“This confirms the need for a continued adjustment of current government spending,” Georgescu said.