Lenders on the Romanian market are not keen on drawing economies in deposits because they have financing from foreign banks and one reason for which they afford to offer interest rates below the inflation rate is there are no investment alternatives, chief economist of the central bank (BNR) said.
There are no investment opportunities in Romania besides real estates, BNR chief economist Valentin Lazea said.
Average interest rates for individuals' bank deposits in lei stood at 6.79 percent per year according to the central bank's statistics while yearly inflation stood at 6.57 percent in December and jumped at 7.26 percent in January.
Only some 50,000 people currently have access to the Romanian Stock Exchange and it is not a reliable investment alternative, Lazea said adding that he hopes the private pension funds to deepen the financial market.
Romania's current account deficit exceeded 14 percent of the gross domestic product last year which is considered to be a very high level. Foreign direct investments stood at only 43 percent compared to 90 percent in 2006.
So far, most lenders on the Romanian market were able to use financing from the parent banks however the investors' increasing worries regarding the Romanian economy could change the situation.
Romania is currently seen as the most risky country in the region and investors have already lost part of their confidence, economist with UniCredit, Fabio Mucci said.
Romania's current account deficit widened 66.1 percent last year from the year before to 16.9 billion euros.
NewsIn
- Publicitate -
