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Central Bank: Real estate market is frozen, investments decrease

de Radu Rizea
Marţi, 23 decembrie 2008, 15:27 English | Business

After the boom that went on throughout the past few years, the real estate market is currently frozen and there are signals that the investments appetite from large operators decreased, the latest circumstance poll conducted by the Romanian Central Bank (BNR) indicates.

The insufficient demand and the financial blockage are the main causes for the diminishing of the activity in industry and constructions, managers estimating an accelerated decrease of their number of employees in both fields.

The BNR study reveals that expectations for the industrial and construction businesses in December have worsened. In industry, the most affected area is the raw matters processing.

Managers responding the poll indicated as main volume affecting factor the low level of demand (37%), the financial blockage (11%), the high interest rate in banking (9%) and difficulties in acquiring the raw matters (3%).

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