Construction materials manufacturers ask for better lending terms

Pro BCA (Pro ACC) Association, controlling around 70% of the market, accuses banks of coming up with exaggerated demands when they lend money to firms in the industry, while the government has turned into their most reliable client. “The state last year took 15bn euros from banks and thus became the most steadfast client and this indirectly led to a halt of lending to the economy (…),” says Nicolae Dusu, chairman of the association and also chairman of Celco Constanta, a 25m-euro business. Producers also ask for the benchmark interest rate to be cut by 1.5% by the start of the second half. “We consider this interest level is absolutely necessary to really reboot lending to firms, a fundamental premise for resuming economic growth,” states Marius Marin, executive director of Pro BCA and CEO of Macon-Simcor group, a 63m-euro business. Producers say this year is set to be more difficult than 2009 because the masonry (brick and aircrete) market will further decline by 10%, after plunging by 30% in 2009. One of the consequences may be a major producer’s filing for insolvency.