Mihaescu, IFC: First lending steps are already visible

Banks are holding enough cash, and lending will be resumed, with the first steps already visible, says Ana-Maria Mihaescu, head of IFC mission in Romania. Bankers, however, are waiting to see clearer signs the economy is recovering first. "(...) I believe the first lending steps are already visible. We cannot expect a rapid recovery, this has always been the issue. Recovery will be a bit slower. I believe IMF support has helped a lot, by rebuilding trust," explained Mihaescu in an interview with ZF. IFC, World Bank's investment arm, has a 650m-euro exposure to Romania, of which around 60% to the banking system. Mihaescu says the volume of loans banks can grant is constrained by the level of available capital. She maintains financial companies can be helped either through capital injections, or by doing away with bad assets. IFC showed willingness to help banks process their bad loans. So far, no banks in Romania have resorted to IFC programme of toxic asset takeover. In Mihaescu's opinion, the Romanian banking system has successfully overcome the crisis and outlooks are positive despite the bad loan problems that may emerge this year.