George Georgescu

Challenges of Bank Lending in Romaniaon Short, Medium and Long-term

The research focuses on several challenges on short, medium and long term bank lending in Romania, taking into consideration a series of economic and social criteria as well as different types of loans. At the same time, special attention is paid to the post-accession into the EU impact and to the financial and economic effects of the international crisis. The main results of the research are expected to point out the necessity of structural improvements in the field of long-term loans contributing to investments boosting as a vital prerequisite for Romania’s economy sustainable development. Meanwhile it is worth mentioning the intensity and duration of the crisis in Romania compared to other developed and emerging EU member countries. The importance of addressing causes that hinder the monetary policy transmission channels, lending sustainable re-launching, more involvement of banks in European funds absorption and growing market share for banks with domestic capital, are highlighted as main conclusions resulting from the study.

Current and Long Run Challenges of Romania's External Debt Sustainability☆

Abstract The paper is trying to stress the high level of Romanias external indebtedness, both sovereign and private, associated with an unpredictable economic environment and an unfavourable global and regional context. The research objectives are mainly devoted to quantitative and qualitative assessments of the current and long run challenges of the external debt sustainability faced by Romania. The results of the study highlight inter-conditional ties between short-term and medium-long term debt, public and private debt, internal and external public debt. The increase in the long-term external debt stock (more than two times during 2007-2013) led to a significant rise in the related annual service (17.8% of GDP in 2013), deteriorating the financial framework of Romania and the growth perspectives. Excessive levels of the external debt and critical debt-to-GDP ratio are recorded in the case of Romania as compared to international standards. Despite large external borrowings, due to the lack of their efficiency, the results in terms of economic development are much below expectations. The easiness of recursion to external borrowings by the government and the debt rollover year by year contravene to intergenerational ethics.