Latvia and Romania record the highest rates in non-performing credits in the region, Moody's Investors Service manager for Central and East Europe Petr Vins declared on Tuesday, June 15, during the first Crediting Risk Management Conference in Romania, organised by ICAP Romania and CYCLE European. In the Moody's rep opinion, Romania is similar to Ukraine and Russia from the law enforcement transparency point of view. The other speakers, Fitch and ICAP reps, analysed the Romanian economy from the perspectives of various sectors. The joint opinion was that the highest risks came from the banking sector, made vulnerable by the increase of non-performing credits, bankruptcies and insolvencies.
In 2008, the structured products took place. Banks followed in 2009. 2010 adds the States' debts. What expects us in 2011, we don't know yet, Fitch says.
Fitch Corporate segment manager Richard Hunter presented a brief description of the most important economic issues in the last years. In 2008, the structured products crisis occurred. In 2009, banks were on the dust pan. In 2010, public debts kicked in. Nobody knows what is going to happen in 2011, Hunter appreciated.
He explained that one of the hopes regards the American economy recovery, which he trusts and says could help the global recovery, alongside the growth of the BRIC states.
Romania's risk is considered "moderate" by the main rating agencies' reps, who met on Tuesday in Bucharest. Talking about the conditions of the global economic recovery, Moody's representatives declared they were not expecting a string comeback in 2010 or 2011. the main "breaks" are the banking sector and the public deficits crisis.
Romanian banks are included in the medium risk Group D (on a scale from A to E, where E represents the maximum risk), but not one bank from the emerging economies holds the
