Uncertainty
The funding obstruction continuation by the Romanian banks and, also the unbearable level of interest in the market has a pervert influence on the health of Romanian companies.
At this time, lack of funding is not only a problem for the real estate developers, who stagnate anyhow due to cold season, but also for other industries in which investments are made.
The difference between survival and bankruptcy is now represented by funding, an essential support in the life of any company. Unfortunately, the chances of obtaining money from sources, other than banks are very low, almost zero even if we exclude private funds with strong speculative nature or the hypothetical European funds, which in addition to suffering from procedural delays, also involve local funding.
Difficulties or bankruptcy of companies due to the lack of funding, or the costs related to this, will in turn create crisis and pressure on fund providers; we should not forget that we are all part of the same economic environment. Epidemic can spread quickly and it will not forgive anyone, creating social cascade effects.
If during periods of expansion, entrepreneurs valued qualities such as aggressiveness, maximizing profits and fight for market share, I think now it emerges the need for solidarity. Solidarity does not preclude competition; however, it starts with the concept that a company can not be healthy if its partners or customers are sick.
An important role in overcoming this moment might have the authorities. These will need to make decisive gestures in terms of credit recovery; I refer here to hire foreign loans, even under these conditions not really advantageous, in order to fund the infrastructure works and, also to balance the external balance of payments once with strict reduction in the budgetary expenditure, thus facilitating pressure on the Romanian taxpayer who is already in a difficult situation.
Dr. ec. Adrian Crivii, MAA, FRICS