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Romanian BRD Sees SMEs As Riskiest Debtors

Small- and medium-sized enterprises (SMEs) represent the riskiest category of debtors in Romania, due to their weak financial structure, limited financing possibilities and their high level of indebtedness, an official of Romanian lender BRD Societe Generale (BRD.RO) said Tuesday.
Romanian BRD Sees SMEs As Riskiest Debtors
27 oct. 2009, 14:34, English

„The banks polled quarterly about corporate loans unanimously said SMEs are the riskiest category of debtors,” Irimia Ionita, delegate executive manager for risk management at BRD, said at a banking seminar in Bucharest.

SME loans amount to some two thirds of the total banking loans in Romania, Ionita said, mentioning that many of the small and medium companies still go bankrupt „overnight.”

He estimated the consumer credit, which amounts to 75% of the total household loans, will continue to carry a significant weight on the Romanian lending market in the years to come, due to the high demand from individuals and the growing popularity of credit cards.

On the short-term however, non-guaranteed loans are bound to fall on an increased aversion to risk assets, Ionita mentioned.