Companies in Romania had EUR11 billion loans taken out directly from banks abroad, mostly from Germany and Austria, at the end of last year, according to Romania’s central bank (BNR) data.
Money coming in from foreign banks represents a third of the companies’ total loans, which also have loans contracted from local banks worth EUR 25 billion.
However, external debts for Romanian companies decreased by EUR 700 million compared to September 2012.
“Usually these loans are contracted by foreign capital firms. It’s natural for mother-companies to try and obtain better financing costs at local branches. Cheaper financing is the main reason for a company to set up a foreign branch. There are very few companies which operate purely on Romanian capital that take out loans from foreign banks”, according to Aurelian Dochia, financial analyst, quoted by Ziarul Financiar.