The smoldering conflict in the political system, focused aroundthe upcoming presidential elections, the blockage in the justicesystem and the authorities' poor performance, are the main negativefactors behind the high costs borne by the business world and bythe financial & banking system in particular, says Rasvan Radu,chief executive of UniCredit Tiriac Bank, one of the top tenplayers in the Romanian banking system.
"In terms of public policies aimed at tackling the crisis, Idon't expect anything major this year. It would be very good forthe government's stability to be maintained, because a governmentcrisis would throw us completely off balance. The blockage in thealready overburdened justice system is not helping at all, quitethe contrary, the economic environment is dealt a furtherblow."
The banker believes economic recovery can only start fromexports, amid positive signals from the EU, and from the big publicinvestment projects, which should get private companies involved."However, the public sector has not helped in any way so far."
Radu says the banks' current priority is to provide backing tocompanies, so that they can restructure and adjust to the newmarket conditions, considering that this environment will extendfurther than this year. "The crisis is in full swing and bysupporting companies and making them viable, which implicitly meansstabilising jobs, we will ultimately reduce the impact the crisishas on the financial system through the non-performing loans."
He says bankers are now much more open towards supportingcorporate clients, attaching more importance to weighingmanagement's commitment and their ability to restructure than toanalysing business plans - which are constantly adjusted.
The head of UniCredit estimates there will be some sectors wherenot all players will be able to make it, and that postponingbankruptcy for some of them will mean postponing revival of anentire sector. "For many companies, the fourth quarter will bedecisive - survival or death."
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