Consumer loan demand is showing signs of growth, but it is notthe healthy result of wage raises, instead reflecting the need formoney of people short on cash, says Răsvan Radu, CEO of UniCreditŢiriac Bank.
He believes the "statistical exit" from recession, which will beofficially recorded as of the first quarter of this year does notmean much in terms of the real economy, where there are stillcompanies facing major problems.
At the end of the first quarter, the banking sector had 24.5billion lei (EUR 5.99 billion) in provisions, up nearly 45% againstthe end of March 2010, but in the course of slowing down theirgrowth rate.
The sector where new provisions are more likely to be set up isthe corporate one, where the lack of demand continues to affectcompanies that have no export operations, while in the retailsector the situation has somewhat stabilized, with clients thathave euro-denominated loans benefiting from the recentstrengthening of the leu. (EUR1 â RON 4.0885)
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