Țiriac believes we'll exit the crisis in 2012

Businessman Ion Țiriac, probably the wealthiest Romanian, is quite reserved with regard to the firm statement that the Romanian economy will exit the crisis at the end of the first quarter. He believes 2011 will be just like 2010 and we’ll leave the crisis behind in 2012.
“Banks have a lot of money at present, even in Romania there is money in banks, but they are equally cautious or hyper-cautious, so that they no longer know where, how, what and to whom to lend money. On the other hand, relationships among banks are almost frozen because everyone is protecting their lifeline,” said Țiriac during the “After 20 Years” show on ProTV.
For 28 months Romania has been struggling to overcome recession, despite some huge loans from the IMF and other international financial institutions that helped the state survive and the exchange rate remain stable.
Premier Boc and the entire ruling party, PDL, several weeks ago announced Romania would exit the crisis at the end of this year’s first quarter. However, the business sector is reluctant to agree to the statement.
“We haven’t detected any signs of economic rebound, the situation is unchanged from the end of 2010, but at least no deterioration can be seen,” said Guy Poupet, chairman of BRD-SocGen, the second biggest bank on the market.
Though it has saved 5bn euros in recent years, consumers are afraid of resuming spending, of buying cars, houses or clothes again. While the industry and exports are obviously growing, consumer spending, lending, construction and investments are contracting, in the end preventing the economy from picking up.
“The only good news is that we have so much catching up to do, that at the moment Europe regains some health, emerging countries like us, but especially us, will be having a much bigger slice of the pie to eat than the others,” Țiriac believes.