UniCredit Tiriac Bank sees less loans for real estate projects
12 March 2009
Real estate developers will seek loans more for 'minor repairs' rather than major projects in the coming period, the President of Unicredit Tiriac Bank Supervisory Board, Dan Pascariu, said.
UniCredit Tiriac Bank has a 15%-20% market exposure in the real estate sector. According to Pascariu, the crisis will lower the exposure of lenders on the real estate market.
The bank official added that payment delays were already registered in this field and their rate is expected to increase, ''but people must understand that the crisis situation is not an excuse for not meeting one’s obligations. Those who do not comply will take the rap for it after the crisis is over, because they will be considered defaulters,'' Pascariu said.
Gerald Schreiner, President of Volksbank Romania, the lender with the highest exposure, of 95%, on the real estate sector, estimated that the rate of payment delays will increase to 6%, from 4% currently, while the rate of defaults will remain below 2%.
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