Romania’s construction sector is heading towards a crisis similar to the one in 2011-2013 if banks continue to limit the individuals’ access to loans, according to a study by financial consultancy firm KeysFin.

“Effects will be felt at general level in the economy, because the construction sector engages a significant number of connected businesses. Some 3,146 companies that operate in the construction sector were declared inactive in the first six months of 2016, up 996 compared to the same period last year,” the KeysFin report reads.

The number of construction companies dropped by almost 3,800 companies, from around 35,200 in 2015 to some 31,300 at the end of June this year. By comparison, Romania had almost 33,900 construction companies in 2010.

The giving-in-payment law and the difficulties recorded by the First House program determined local banks to revise their lending policy, and the results were visible in the lower volume of new housing projects, according to KeysFin analysts.

editor@romania-insider.com