Lending to the economy has been declining steadily for almost three years. In the second quarter of this year, the volume of credits granted amounted to ROL 34.2 billion compared to ROL 47.2 billion in 2004 Q3, a reduction of 13 billion lei.
However, in terms of GDP, the situation is much more dramatic. Lending to the economy is at 24.2% of GDP, the lowest level in recent years, and 70% lower than the peak reached in 2014 third quarter.
If we maintain the same level of lending of the economy in relation to GDP, then the volume of credits offered at present should be at the level of 59 billion lei, or 25 billion lei more. The inability of the economy to absorb financial resources clearly illustrates the deplorable state of our economy. Sad but true, the economy dies and apparently there are no signs of a return to life.