Banks expand short-term debt in 2010, after pausing a year

Banks increased their foreign short-term debts, largely reflecting funding received from foreign shareholders, by almost 1bn euros last year, to 7bn euros.

"The development shows banks started borrowing again from abroad. (...)," commented Radu Craciun, an investment manager with Eureko Pensii.
Foreign analysts that in 2008 criticised Romania pointed to the very high level of short-term foreign debt, even though this was concentrated in banks and private companies. Rising short-term indebtedness can inclusively appear amid the shifting of some resources raised on the long term to shorter maturities. Banks' long-term foreign debt climbed by only 241.9m euros last year.
The trend of banks' foreign debt is related to the trend of lending in Romania, and given the relatively modest expectations about this year's lending growth, analysts are not anticipating a significant advance in banks' foreign debt in the following period.