Romania ranks fifth among countries where banks are more willing to finance real estate projects
Romania, according to the study, has 5 percent of the total real estate transactions in the CEE region, which, in first half of 2011 amounted to EUR 5.1 billion. The highest ratios of impaired real estate loans were registered in the Baltic countries, with 17 percent serious impairment and 54 percent minor impairment, followed by Romania with 23 percent serious impairment and 33 percent minor impairment, while the highest proportions of fully compliant loans are in Austria, followed by Bulgaria and Poland.
On provision levels, they are considered to be relatively low in most countries, but are considered adequate in Romania, Austria, Bulgaria and Slovakia. The amount of provisions is expected to increase in all countries. However, in Romania and Slovenia, banks expect a significant increase in the level of provisions this year, according to the study.
“In terms of sector preferences, these are inconsistent and vary from country to country. In Hungary and Serbia, retail is the first priority, whilst in the Czech Republic, Poland and Romania the office sector is the most preferred,” said Ori Efraim.
The KPMG survey included Austria, the Baltics, Bulgaria, the Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia, and Slovenia. See the entire study here (PDF version).
Irina Popescu, irina.popescu@romania-insider.com
(photo source: Sxc.hu)