First banker to say economy is picking up

Laszlo Diosi, head of OTP Bank, a medium-sized bank with about one billion euros in loans, is the first banker that dares to show a bit of optimism after the shock of the harsh austerity measures of the summer and says there are Romanian companies doing better now than they did in 2008.

“The economy isn’t dying, there are also Romanian companies doing better than they did before the crisis. It is about the companies that had not taken on too much debt, have a good management, a sufficiently diversified client portfolio and do not depend on business with the state. These companies are now growing more than they did in 2009 or even 2008,” Diosi says.
He is thus taking a different stand compared with the other bankers, who only see the clients that are “dying”, because of the arrearage. OTP, too, is experiencing losses this year, after having had to set aside extensive provisions for the loans granted to a number of real estate developers. More than 14,000 companies went insolvent in the first eight months of the year, with entrepreneurs reaching the end of their rope after witnessing their businesses decline.
Usually, players operating in such sectors as construction materials manufacturing and distribution, automotive, or metallurgical industry are those that are seeing growth now, Diosi says.
Industry has grown this year pulled up by the export rebound, which have gone up by more than 20% compared with last year and reverted to 2008 levels, yet domestic consumption remains really weak.
OTP’s boss believes that despite political and even social tensions, foreign investors are not fleeing Romania, and the economy will rebound sooner or later.