Ghetea: Foreclosure is no advisable alternative for banks, at the moment

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Foreclosure is not an advisable alternative for the banks at the moment, because there is no sale market, either in the real estate sector, or for land and factories, Romanian Banking Association (ARB) president Radu Gratian Ghetea said on Tuesday.

‘The banks are not interested in foreclosures, at the moment, but rather in keeping their clients alive, in activity, so that any client can overcome this difficult time.

There is no advantage for anybody, either for the bank, or the client, to foreclose on a flat worth 100,000 euros, which was worth 120,000 euros when the credit was borrowed, and it is worth 80,000 euros, now,’ said Ghetea.
He stressed that the moment of truth comes after this difficult period passes, „who will be able to go on will do it and who fails, fails.’

‘If they can continue their activity, we will continue financing them, and we are to foreclose on those who fail. But, we give a chance to overcome the downturn, to them all, now’ Ghetea stressed.

According him, Romania had experienced such periods before 2000 as well, but it recovered more easily, because it was not so much integrated at the international level.

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