Foreign banks' exposure to Romania, 1bn euros lower in Q2
Foreign banks' overall exposure to Romania in late June stood at 81.4bn euros, down almost 1bn euros compared with the end of March, with the steepest declines being reported in the case of Dutch and Greek banks.
According to the data centralised by the Bank for International
Settlements, at US dollar denominated values the total exposure
took a more dramatic plunge, by 10.9bn dollars, with the gap being
generated by the dollar's fluctuations against the euro.
"There are several factors that can account for the falling
exposures. One must not imagine these declines as cash exiting the
country. Banks with exposures to Romania are rebalancing loans,
including bad ones, to keep their solvency within normal limits.
(...)," said Radu Crăciun, chief investment officer with Eureko
Pensii.
Against the autumn of 2008, when the international financial crisis
violently hurt Eastern Europe as well, foreign banks' exposure has
dwindled by 5bn euros.
European banks in late June had an exposure of almost 79bn euros
(96.3bn dollars) to Romania, namely 96.3% of foreign exposure to
Romania, according to the BIS report.