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Romania May Resort To CEC, Eximbank If Lending Crunch Continues – Senate Speaker

Romanian authorities will assign additional funds to capitalize state-owned lenders CEC Bank and Eximbank and up guarantee funds for small and medium-sized enterprises, unless banks restart the lending activity, Senate chairman Mircea Geoana said Tuesday.
Romania May Resort To CEC, Eximbank If Lending Crunch Continues – Senate Speaker
24 feb. 2009, 13:08, English

"If the lending activity restart fails or is delayed, Romania will resort to CEC and Eximbank. Thus, if banks do not begin granting loans, the state will have to find measures to overcapitalize CEC, Eximbank and the funds guaranteeing loans of SMEs," Geoana said after a meeting with Romania’s commercial representatives abroad.

He said the lack of bank loans might turn Romania "into a Sahara of lending."

The Government has already decided to increase the capital of both Eximbank and CEC Bank, and to create a fund to counter-guarantee the loans granted to SMEs, worth EUR100 million.