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The indicator of net lending shows that economic agents are afraid to invest and take loans - Veaceslav Ionita.

The indicator of net lending shows that economic agents are afraid to invest and take loans - Veaceslav Ionita.

The economic policy expert at the Institute for Development and Social Initiatives Viitorul expressed this opinion, noting that since 2014, after the bank fraud, there has been an annual excess of money in the banking system. While before 2014, the volume of loans was at the same level as the volume of deposits, afterwards, up to 2022, the volume of deposits increased and the volume of loans decreased. "In the second quarter of 2023, we had a surplus of about 45 billion lei. The money is lying unused in banks. This fact shows how 'sick' our economy is. The credit system should be 60% of GDP, but it is 2 times less and we still have surplus money. The fact that money is lying in banks means that the economy can't absorb it," the expert believes. At the same time, by the third quarter, the loan portfolio of economic agents in banks increased by 400 million lei, while the volume of deposits increased by 6.6 billion lei. "Economic agents not only did not take loans, but also did not invest their money, but continued to give it to banks. Net lending shows that our economic agents are afraid to invest, afraid to take loans. In the past, we always had loans much higher than deposits. Today we have a gap, which we didn't have before," Veaceslav Ionita said. At the same time, according to the economic analyst, the situation looks even more vulnerable in terms of GDP. In 1999, lending to economic agents amounted to 12.3% of GDP. In 2008, it rose to 32.6%, in 2013 - to 33.2%. In 2019, there was a collapse to 13.5%. In 2020, it rose to 15.7%. It is now 13.8% of GDP. "After 2014, our economic agents and the economy have suffered a lot and we have not found the factors that would allow us to grow, develop and invest. We are at the level of 2000 and we cannot get out of this trap we fell into after the bank fraud and we lost products worth tens of billions of lei because the economy cannot recover," the expert reasoned. // 09.10.2023 - InfoMarket.

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