Businessman Dan Sucu, owner of Mobexpert group and one of the best-known Romanian entrepreneurs, is criticising the local banking system (80% of it held by foreign financial groups) harshly, accusing it of artificially blocking lending to individuals and thus hurting consumption and businesses and driving economy down instead of helping it.
"Now, whether we want to admit it or not, the main problem is the retail lending blockage, which I see as being mostly artificial (he means the high interests i.e.). Unfortunately, strategic decisions in the banking system are no longer made in Bucharest. I believe the local bank management is not truly capable of expressing its views to the decision-makers in Vienna or in Paris, so that everything is frozen," Sucu said.
He explains that the lending problem in Romania does not concern major companies, as the specialist lawyers negotiate good terms for both parties, but rather individuals, in which case the bank always protrudes its views.
"We are not concerned about our loans because we made sure they were negotiated in a fair manner. We might have some trouble with the existing ones in case we needed additional loans. But who needs development now? We are concerned about the lending to our clients, which is frozen. And I don't think the state can intervene," Sucu added.
Over the last two years, lending to individuals has drastically fallen, which affected all markets: automotive, real estate, home appliances, furniture markets etc. As a paradox, with the crisis in full swing, banks not only did not cut interests to individual clients but on the contrary, raised them, thus blocking any purchase based on a loan.
"The banking system in Romania - regardless of what the National Bank says, is a mess. It is safe (sound i.e.), but this is not the safety we need. It kills everything. This is not a reasonable
