The increasingly stronger position held by large foreign banks on central and eastern European markets, Romania included, tends to seriously hinder the development of small-and medium-sized enterprises (SMEs) in the respective countries. This is due to a reluctance displayed by these lending institutions towards financing SMEs, according to a survey released by the European Bank for Reconstruction and Development (EBRD).
"In the new EU member states and in those countries about to join the EU, with their markets dominated by foreign banks, trends manifest over the last several years suggest that SMEs encounter much bigger problems in gaining financing than large companies do and cannot expect a significant improvement of lending conditions," reads the above-mentioned research.
