“In central and eastern European markets, Ukraine and Romania were the most affected, in terms of local currency evolution. In Romania, the downtrend was milder than in Ukraine, but higher than we have expected for this period. The effects will depend heavily upon the length and weight of this depreciation,” said Manfred Wimmer at a media briefing in Vienna, NewsIn informs.

He also explained that a 4.9 lei/euro exchange rate would trigger major losses that could wipe out the profits in the respective segment. Nevertheless, Erste has a comfortable margin, if the median exposure to mortgage loans is 60% of the collateral’s value and the indebtedness degree is 45% at the most, Erste’s CFO added.

Chairman of OMV, Wolfgang Ruttenstorfer, said Petrom’s evolution is not yet gripped by the meltdown of the local currency, as the oil prices are expressed in euros. He added that euro’s consolidation versus leu was actually profitable for Petrom’s balance sheet.

On the other hand, Peter Hagen, member of Vienna Insurance Group RE board said insurance field was not dented by the currency risk, as both the premiums and compensations for damage are paid in local currency.

He added that, although leu’s downfall could affect the profit of its Romanian subsidiary, the impact was, however, limited because Romanian subsidiaries still have a narrow contribution to overall earnings of the group.

“Romania contributes with merely 3-4% to the group’s overall profit. Therefore, the depreciation of the leu will not have a major impact”, said Hagen.