Bankers take out long-term financing from foreign shareholders

Medium and long-term deposits of non-residents - which largely reflect financing attracted by banks on the Romanian market from foreign shareholders - hit a new all-time high, of 6.77 billion euros in August, with bankers now seeking to balance out their balance sheets. The previous peak had been reached in July - 6.48 billion euros, according to data from the NBR (National Bank of Romania). "This is a natural trend, which will continue. Financing is changing as a result of the minimum reserve requirements being cut to zero for liabilities with over two-year maturities," says Lucian Anghel, chief economist of the BCR (Banca Comerciala Romana). Banks now have to attract longer-term financing, closer to the maturities of the loans granted. In previous years bankers preferred to borrow on short term, in order to pay lower interests. In spring, when liquidity plummeted on international markets, those that had short-term financing taken out had great difficulties renewing the loans, and costs rose.