However, he pointed that if lending had continued to accelerate as in the past years, Romanians would be swimming in debts in a couple of years, NewsIn states.

“Paradoxically, the financial crisis has positive effects on Romania,” Isarescu said, adding that had it not been for the economic downturn, Romanians would have ended up suffocated by debts in the one-two years.

Yet, the country is still under the umbrella of the too sudden brake of lending and needs to tackle respective issues with care and balance, he also said.

Lending in Romania contracted significantly since the fall of last year for two reasons. On one hand, the central bank’s new crediting norms intended to limit borrowing risks, entered into force in October last year and forced banks to take extra-measures. On the other hand, the first buds of the economic crisis started to show in Romania at the same time and affected the lenders’ liquidity, hampering lending.

Also, some mother banks affected by the crisis drained money from Romanian branches. Not to mention the recent steep decline of the national currency which raised borrowing costs.

Loans to people and companies in Romania clutched by 1.5 billion euros in January to 48.26 billion euros despite a 4.2 percent advance in December last year, calculated in lei, an effect of the economic crisis, the central bank announced on February 24.