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Lending Won’t Be Main Driver Of Romania’s Growth In Long Run – Raiffeisen

Romania's economic growth will be higher than European Union’s average on long-term, due to the convergence process, but the economy will no longer be sustained by loans, as before, Raiffeisen Bank Romania’s chief executive Steven van Groningen said Wednesday.
Lending Won't Be Main Driver Of Romania's Growth In Long Run - Raiffeisen
26 mai 2010, 11:30, English

Lending in Romania has dropped significantly lately, mainly due to the lowering demand and reduced consumer confidence.

„The solution is not to tell banks to lend money. Several things must be changed in the economy, things that would really stimulate the economy,” van Groningen said.

Consumer trust is much lower in Romania compared with other European states, therefore the lending activity is sluggish, he added.

The Romanian authorities and the International Monetary Fund’s experts estimate zero economic growth for this year, after a 7.1% contraction in 2009.