Misu Negritoiu, ING: Credit trend will worsen

The chances of seeing a revival of lending in the coming period are low, according to Misu Negritoiu head of ING Bank Romania, amid falling demand on the part of clients, as well as falling supply on the part of banks. "In terms of supply, financing is harder to access by the majority of banks. Moreover, the expected worsening in economic activity makes banks increasingly reluctant to lend to the population and to companies," says Negritoiu. Data from the NBR (National Bank of Romania) show that in November and December retail and corporate lending fell both for loans in RON and in foreign currency (if the effect of the exchange rate depreciation is eliminated). Practically, banks sold fewer credits than were repaid, which prompted a decline in volume. Whereas an abrupt decline was to be expected on the retail segment, given that the tougher regulations imposed by the NBR in October overlapped with the liquidity shortage on the international markets, the weak performance in the corporate sector was a surprise even to central bank chiefs.