Bankers borrow again from abroad on short term

Banks again increased the short-term foreign debt, largely
reflecting funding received from foreign shareholders, by half a
billion euros in the first quarter, to 6.62bn euros, after a year
when the amount had dropped. The increase came inclusively amid the
shifting of some sources raised on the long term to shorter
maturities, with the volume of long-term debt sliding for the first
time since late 2008. Analysts say the switch to shorter maturities
can point to a worsening risk perception among foreign lenders. The
foreign private debt accumulated by banks and companies still
accounts for more than half of Romania’s total foreign debt, but
the growth pace has slowed significantly, with alarm signals now
coming from the public sector whose indebtedness has gained speed.
Banks at the end of the first quarter had a foreign debt worth
21.6bn euros, slightly up from the end of 2009. Lending
institutions’ long-term debt shrank by almost 350m euros from the
end of last year, to 15bn euros.