Access Investments-European Union- ROMANIA

BUCHAREST - The exposures of Greek and Dutch banks to Romania fell by nearly three billion euros last year compared with 2009, according to data published by the Bank of International Settlements (BIS), also known as the bank of central banks. In the case of Greek banks, exposure to Romania fell by 1.6 billion euros, to 15.8 billion euros, while for banks in the Netherlands exposure was reduced by 1.1 billion euros, to 5.2 billion euros. The Greek now hold 16-17% of the assets in the Romanian banking system, and problems in their own country, which faces a crisis so tough it has shaken the entire euro zone, are making it much more difficult for Romanian operations to finance their activities through loans. Last year, Greek banks kept pressure up on deposit interests and implicitly on loan interests, paying interests above the market average in order to finance their operations preponderantly from the local market. Alpha Bank and Bancpost (the subsidiary of EFG Eurobank) are in the top ten players, but there are six banks with Greek shareholders operating on the Romanian market. Dutch banks are represented on the Romanian market by ING, but there are further lending institutions with local exposure, including to T-bills. "Bank's exposures have remained relatively stable in crisis. More money will continue to flow in if demand for foreign-currency loans returns. Foreign banks' exposure rose very much when lending rose significantly, before the crisis. Financing from parent banks will grow if financing needs grow," commented Ionuţ Dumitru, chief economist of Raiffeisen Bank. (Z.F.)