Countries that have not adopted the euro, or are not pegged to it, have each seen a 10-percent depreciation in currency value between February and March, according to Colliers International. The Romanian leu is the exception, which has depreciated just 1 percent, largely due to central bank intervention. As the majority of leases in the CEE region are denominated in euros, this latest currency depreciation could come as an additional strain to occupiers, particularly those whose income is largely collected in local currencies. “On top of the forced or voluntary operational closures for retail, F&B, entertainment, hospitality, offices and some manufacturing and production facilities, to safeguard people’s health, this puts both landlords and tenants in a very unfortunate predicament,” said Kevin Turpin, regional director of research at Colliers. “This is indeed uncharted territory, as the pandemic and subsequent states of emergency are restricting ‘business as usual’ for so many individuals and businesses. Therefore, reaching a mutually ‘best of a very bad situation’ compromise is surely one way to help protect all of our interests in the long run.”
