Romania To Overcome Fincl Crisis Late 2010 - Coface

Romania will exit the crisis at the end of 2010, one year later than the USA and Europe's developed economies, as the effects of the crisis also occurred one year later, according to risk management company Coface Romania.

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The general manager of Coface for Romania, Bulgaria and Slovakia, Cristian Ionescu, said that Romania would recover from the crisis after foreign investors regain their confidence in the economy and real estate development projects are resumed.

Ionescu added that layoffs would continue, leading to higher unemployment that will trigger the increase of the default rate at banks and utilities suppliers, as well as a consumption cut.

Coface representative said that, after the crisis ends, companies would not restart hiring until economic growth becomes sustainable.

Ionescu added lending would not return to normal until banks access cheap financings from abroad and would register a drop in the default rate.

According to the Coface general manager, the crisis in Romania has peaked yet, adding that the first quarter of next year will probably be a difficult one for everyone.

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