The world will enter the age of the expensive loan which takes the place of the cheap loan, but after the crisis public finance will recover and lending will go back to normal, former Finance Minister, economist Daniel Daianu said on the occasion of the Europe-Russia Forum held in Bucharest.
„We enter, because of the crisis, the age of the expensive loan that will be quite a long one. After having experienced the cheap and easy-to-get type of loan, it’s time for a recovery of the public finance and for a return to lending on simple bases, at the same time with a revision of the banking system and its functioning,” Daianu said.
He explained that the way in which the European governments and the US government are managing the crisis, generates two threats: the resurgence of inflation and expensive loans, for companies in particular.
„It is clear that Keynes is back” but this policy of massive public investment, through massive inflows of liquidities, might trigger a resurgence of inflation and an expensive loan, for a very long period, and that would mainly affect companies,” he explained.