Dinu Patriciu : the crisis in Romania is at the beginning

The businessman Dinu Patriciu said, on Friday in a press conference, that in Romania the crisis is at the beginning and we do not know how much it is going to last as there are no measures taken to fight it, as it happened somewhere else Mediafax says. Patriciu stated that the crisis period is going to last as long as no measures are taken to stimulate economic growth and domestic consumption. Patriciu said that agriculture does not produce as there are no collecting systems for produce, short logistic chains to make the connection between the farmer and the client. The businessman said that one necessary measure is the tax exemption for investment in agriculture, which would stimulate agricultural production.

Dinu Patriciu says that another problem is that the banking system is made up of branches of foreign banks. He stated that there should be a banking system where local banks, regional banks and medium banks exist. “ There are branches of high dimensions and who act according to grids which do not correspond to the Romanian SMEs. What here is considered to be big firm, in other parts is considered to be small. In the US, a small entreprise is up to 50 million dollars turnover. With us, 80% of the economy is of that dimension. It cannot be financed only by the branches of these foreign banks. The capital exists. The legislation is the problem. You don’t have to borrow from IMF, you can find the money on the private market. Today, financial markets are flooded with liquidity, but they do not get to the real economy”.

News source: Actmedia link: article