“Provided the [financial and economic] situation remains stable, financing costs in Romania will continue to decline on the short-to-medium term,” Olteanu told a banking seminar.
As for sovereign financing costs, the central bank official said investors are more confident regarding financial and economic stability in Romania, but their perception “has not changed enough for credit costs to be as low as in other countries.”
Olteanu said Romania is borrowing money at lower costs than Italy, but the costs are nowhere as low as in Germany.
“Public institution costs are too high and productivity levels remain problematic,” he said.
The bank official said many local companies have difficulties in accessing a credit line because they lack capital, which make them seem less trustworthy to banks.
Finding new loans becomes even more challenging for companies that enter insolvency proceedings or undergo restructuring, Economy Minister Andrei Gerea said.
For example, insolvent state-run chemical company Oltchim SA finds itself in the “embarrassing situation” of asking banks for a EUR15 million loan to restart a production line and be able to break even, but no bank would extend the loan, the attending minister said.