Sucu: Banks are killing lending to individuals

Businessman Dan Sucu, owner of Mobexpert group and one of the
best-known Romanian entrepreneurs, is criticising the local banking
system (80% of it held by foreign financial groups) harshly,
accusing it of artificially blocking lending to individuals and
thus hurting consumption and businesses and driving economy down
instead of helping it.
“Now, whether we want to admit it or not, the main problem is
the retail lending blockage, which I see as being mostly artificial
(he means the high interests i.e.). Unfortunately, strategic
decisions in the banking system are no longer made in Bucharest. I
believe the local bank management is not truly capable of
expressing its views to the decision-makers in Vienna or in Paris,
so that everything is frozen,” Sucu said.
He explains that the lending problem in Romania does not
concern major companies, as the specialist lawyers negotiate good
terms for both parties, but rather individuals, in which case the
bank always protrudes its views.
“We are not concerned about our loans because we made sure
they were negotiated in a fair manner. We might have some trouble
with the existing ones in case we needed additional loans. But who
needs development now? We are concerned about the lending to our
clients, which is frozen. And I don’t think the state can
intervene,” Sucu added.
Over the last two years, lending to individuals has
drastically fallen, which affected all markets: automotive, real
estate, home appliances, furniture markets etc. As a paradox, with
the crisis in full swing, banks not only did not cut interests to
individual clients but on the contrary, raised them, thus blocking
any purchase based on a loan.
“The banking system in Romania – regardless of what the
National Bank says, is a mess. It is safe (sound i.e.), but this is
not the safety we need. It kills everything. This is not a
reasonable option,” Sucu said.