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Bankers are bringing money from abroad. Are they getting ready to resume lending?

Autor: Liviu Chiru

26.04.2011, 23:29 15

Foreign bankers have pumped additional funds for Romaniansubsidiaries, with the amount of non-residents' medium andlong-term deposits (reflecting in fact funding raised by domesticbanks from shareholders) hitting a new all-time peak in February,of 8.4bn euros.

The volume of these deposits started climbing visibly at theend of last year, after having stalled for a relatively longperiod, between September 2009 and October 2010, fluctuatingbetween 7.2 and 7.6bn euros. In December 2010, though, the volumetook a leap, to 8.2bn euros, according to NBR data. After a breakin January, the increase was resumed in February.

It remains to be seen whether this increase reflects just aresettling of lines of credit to longer maturities or whether thisis new money that will start flowing to the real economy as well.Bucharest bankers are trying to promote the message that they havemoney and appetite for granting funding and are even announcingthey are seeing rising interest from clients as well.

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