Bankers' bet for lending growth: one-digit territory

Bankers are unanimously betting lending to the private sector will resume growth in 2011, after two years of declines, though do it slowly, most probably at a one-digit pace. Only small players are hoping for two-digit rates.

Expectations lending will pick up this year come as a timid economic recovery is forecast, with a projected increase of around 1%. Under the circumstances, even the most upbeat plans are still far from the three-digit paces registered during boom years.

Sergiu Oprescu, chief executive of Alpha Bank, ranking third domestically in terms of assets, speaks about “moderate” growth, linked to the fragile economic rebound.

CEC Bank, the only top ten bank still held by the state, has somewhat more ambitious plans, particularly on the retail segment.

The most ambitious plan announced so far comes from Turkey’s Garanti Bank, which has budgeted a 30% increase in lending for this year, to 975m euros.