Last week there was the good news about the loans of Romania, almost 20 billion euro in total, by IMF, E.U., World Bank and EBRD. Next day there was the news regarding the 9 major banking institutions which are present in Romania and offered a \u201cvote of trust\u201d to the country. The expected inflow of billions of euro (from the loans) has already started influencing the euro \/ Ron currency. After some months, Ron started being appreciated towards euro and this had already caused some \u201cstrange\u201d discussions in Romanian media and the market in general\u2026
\nI returned to Bucharest last night and I already heard (and read) that the problem is now\u2026 solved (!), that we finished with the biggest part of the trouble, that in few months things will be \u201cas they used to be\u201d. I even heard people telling me that by the year end the Real Estate prices will be as they used to be in 2008 \u201cand they will grow even more\u201d. It looks like there are many of you out there who didn\u2019t stop dreaming\u2026 People who still wait the \u201cnice old days\u201d and they are searching every opportunity so as to find an excuse and sustain their opinion with \u201carguments\u201d.<\/p>\n
The reality today (in my opinion of course) All these do not mean that we have to remain grumpy and sad. On the contrary, I think the news is good. But it is one thing the news to be better than the past and it is something else, completely different, to forget the environment we all live in. The problem is in front of us and we have to work and solve it.<\/p>\n The official announcement of the 9 banks is:<\/strong><\/p>\n Financial Sector Coordination Meeting on Romania We, the parent institutions of the nine largest foreign-owned banks incorporated in Romania, with a market share of 70 percent of assets, met in Vienna, Austria, on March 26, 2009, at the invitation of the Joint Vienna Institute (JVI). The meeting took place under the chairmanship of the International Monetary Fund (IMF), with the participation of the European Commission (EC), the World Bank Group, the EBRD, the EIB, the National Bank of Romania (NBR), the home country banking supervisors and Erste Bank Last week there was the good news about the loans of Romania, almost 20 billion euro in total, by IMF, E.U., World Bank and EBRD. Next day there was the news regarding the 9 major banking institutions which are present in Romania and offered a \u201cvote of trust\u201d to the country. The expected inflow of […]<\/p>\n","protected":false},"author":3,"featured_media":59454,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[216,205,17,204,236],"tags":[],"_links":{"self":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/255"}],"collection":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/comments?post=255"}],"version-history":[{"count":0,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/255\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/media\/59454"}],"wp:attachment":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/media?parent=255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/categories?post=255"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/tags?post=255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n<\/strong>So, for me the things are a bit different and I will describe to you shortly:<\/p>\n\n
\n\u2022\u00a0The country simply has the chance to organize its strategy for the future without the pressure of the cash shortage, without the risk of something really bad to happen.
\n\u2022\u00a0The danger remains, especially if Romania will not move fast.
\n\u2022\u00a0The serious \u201cstructural\u201d problems of Romanian economy still exist, while in the same time the advantages are also present, the potential remains excellent and if the country will lead to the correct direction, the future is bright.
\n\u2022\u00a0We still have lots of bad moments to live during this year and many exaggerations to fight with.
\n\u2022\u00a0Instead of dreaming and hoping, we need to realize that the whole world returns back to basics and adjust on these.
\n\u2022\u00a0The banks will not start lending soon to everyone, for everything, with low interests and small personal contributions, like they used to.
\n\u2022\u00a0The faster we will sit down and work hard, the sooner will leave back our problems.
\n\u2022\u00a0The Real Estate market still has lots of \u201cpumped air\u201d from the past, which needs to be removed.
\n\u2022\u00a0In the same time, when you find a good property with an attractive low price, you should go for it, opportunities don\u2019t last forever.<\/li>\n<\/ul>\n
\n<\/strong>Held at the Joint Vienna Institute on March 26, 2009, Vienna
\nConcluding Statement by Participating Banks<\/strong><\/p>\n
\nMinistries of finance (Austria, France, Greece and Italy), and in the presence of the European Central Bank.
\nWe agreed on the following considerations and conclusions:
\n1<\/strong>. We accept with satisfaction the shared analysis of the NBR, the IMF Romania team and the EC that all banks in Romania are currently in good financial condition, and that the parent banks of the foreign – owned Romanian banks have so far behaved responsibly, providing their Romanian affiliates with capital, funding, managerial and other types of expertise as the need arose.
\n2<\/strong>. The IMF, the EC and the World Bank are in the process of finalizing a balance of payments support package for Romania. We welcome this important development that will ensure the consolidation of macro-economic and financial stability in Romania.
\n3<\/strong>. We are aware that the success of the macroeconomic program, as well as medium term balance of payments sustainability in Romania will also be favorably enhanced by the continued involvement of the foreign-owned banks.
\n4<\/strong>. We entered the Romanian market as strategic investors and key contributors to its transition toward an open, market-based economy, based on our assessment of and continued confidence in the country\u2019s long-term growth prospects. We have made substantial investments in Romania over a number of years, and we remain committed to doing business in the country.
\n5<\/strong>. We are aware that it is in our collective interest and in the interest of Romania for all of us to subscribe to coordinated commitments to maintain our overall exposure to Romania.
\n6<\/strong>. We also acknowledge that our subsidiaries in Romania will have to adjust to the current challenging economic environment. A need for additional capital cannot be excluded, and will be provided as necessary.
\n7<\/strong>. We have taken note of the agreement reached between the IMF and the NBR to run stress-tests based on established IMF methodology to estimate the potential losses that the Romanian banks might face under diverse scenarios during the period of the IMF\/EU program. We support this exercise and agree to support our Romanian subsidiaries in order to: (i) confirm that these affiliates\u2019 current good financial standing will be preserved throughout the period of market turbulences and economic slowdown; (ii) demonstrate our long-term commitment to the development of the Romanian economy; and (iii) signal our willingness to contribute to the efforts of the international community to put in place a comprehensive and well-coordinated response to the crisis.
\n8<\/strong>. We are therefore prepared to make these commitments, within the framework of the multilateral support programs, on a bilateral basis with the BNR, and with the involvement of our home country supervisory authorities, according to European and the respective national regulatory frameworks.<\/p>\n
\nRaiffeisen International
\nEurobank EFG
\nNational Bank of Greece
\nUnicredit
\nAlpha Bank
\nVolksbank
\nPiraeus Bank
\nSociet\u00e9 Generale<\/p>\n","protected":false},"excerpt":{"rendered":"