Georgescu, BNR: Greek Lenders Have Backup Plans For Unforeseeable Situations

05.25.2011 By Dragu Georgeta Florentina

Romanian subsidiaries of Greek banks benefit from “comfortable” solvency and liquidity levels and they have backup plans to deal with possible unforeseeable situations, a central bank official said Wednesday.

Speaking at an economic seminar, first deputy governor Florin Georgescu said the solvency ratio of local banks with Greek capital is above 11%, adding that the central bank is keeping a close watch on the situation.

On a separate note, Georgescu said private lending on the local market is likely to increase by 7% in nominal terms in 2011.

He said government lending has increased to 16% of total lending in March this year, from 5% at the end of 2008. Additionally, consumer and corporate loans fell from 29% of total to 26% and 28%, respectively.

"This confirms the need for a continued adjustment of current government spending," Georgescu said.