Banking loans to Romania’s private sector reached USD 50 billion last year, down 26% compared to the pre-crisis level, according to a study by consultancy group UHY.

Corporate lending amounted to USD 70 billion in 2008.

On the other side, banking loans to private companies increased by 24% on average in the 24 countries included in the study between 2008 and 2016.

Private sector lending increased in the run-up to Romania's accession to the EU in 2006, but continued to decline due to the lack of confidence in the long-term economy from the banking and business sectors, according to UHY. Countries such as Spain and Ireland, which were most affected by the banking crisis, have the slowest recovery in terms of private sector lending.

editor@romania-insider.com