First banker to say economy is picking up
Laszlo Diosi, head of OTP Bank, a medium-sized bank with about one billion euros in loans, is the first banker that dares to show a bit of optimism after the shock of the harsh austerity measures of the summer and says there are Romanian companies doing better now than they did in 2008.
"The economy isn't dying, there are also Romanian companies
doing better than they did before the crisis. It is about the
companies that had not taken on too much debt, have a good
management, a sufficiently diversified client portfolio and do not
depend on business with the state. These companies are now growing
more than they did in 2009 or even 2008," Diosi says.
He is thus taking a different stand compared with the other
bankers, who only see the clients that are "dying", because of the
arrearage. OTP, too, is experiencing losses this year, after having
had to set aside extensive provisions for the loans granted to a
number of real estate developers. More than 14,000 companies went
insolvent in the first eight months of the year, with entrepreneurs
reaching the end of their rope after witnessing their businesses
decline.
Usually, players operating in such sectors as construction
materials manufacturing and distribution, automotive, or
metallurgical industry are those that are seeing growth now, Diosi
says.
Industry has grown this year pulled up by the export rebound, which
have gone up by more than 20% compared with last year and reverted
to 2008 levels, yet domestic consumption remains really weak.
OTP's boss believes that despite political and even social
tensions, foreign investors are not fleeing Romania, and the
economy will rebound sooner or later.