BANCI | ENGLISH

Mugur Isarescu: A stand-by accord with the IMF means huge costs for Romania

Autor: Bancherul.ro
2009-02-09 21:10

While a stand-by agreement with the International Monetary Fund (IMF) implies costs of hundreds of millions of euros for Romania, as the non-use commission stands at 25 percent, while a loan from the European Union could be a good idea, thinks Mugur Isarescu, governor of Romanian central bank BNR.

During a meeting with the Finance Minister Gheorghe Pogea, Isarescu stressed that the public deficit is wide and the service of the public debt is big.

�We are talking about 2-3 billion euros, of which the Ministry of Public Finances hopes to obtain financing for about 2 billion euros,� mentioned Isarescu.

The BNR governor added that he debated the matter of an European loan with Romania's President Traian Basescu and that it might prove to be a good idea, considering the country's capacity of drawing European funds.

�We do not own the capacity to absorb 6-7 billion euros through European funds, so a pre-financing from the Union would not be harmful,� concluded Isarescu.

IMF, whose representatives were in Romania on a regular mission at the end of January, pressed the government to determine it to sign an accord this year, a move the Cabinet tries to elude, people close to the situation told NewsIn.

Romania�s government, reticent in accepting the conditions the IMF would impose in case of a loan, wants to borrow money from the foreign market to cover the 2008 budget gap and pay debts, the same people said. Yet, the option of an aid from the IMF is not to be erased from the list, they added.

Romania does not need any financial aid from the IMF, as the foreign currency reserves cover more than 90 percent of the country's short, medium and long-term debt, the central bank's vice governor, Cristian Popa, said at the end of October last year.

However, since then the economic context worsened and less money than estimated is entering the government�s accounts. The state wallet is so empty that authorities mull freezing public salaries and pensions for four months to spare money for investments, a decision the president would not oppose.

Comentarii

Adauga un comentariu

Adauga un comentariu folosind contul de Facebook

Alte stiri din categoria: ENGLISH

Merger of Alpha Bank and UniCredit Bank Romania

Press Release: "Alpha Services and Holdings announces a strategic partnership with UniCredit in Romania Merger of Alpha Bank Romania and UniCredit Bank Romania and creation of third largest bank in Romania by total assets, with Alpha Bank retaining a detalii

National Bank of Romania (NBR) Board decisions on monetary policy

NBR Board decisions on monetary policy In its meeting of 4 April 2023, the Board of the National Bank of Romania decided: • to keep the monetary policy rate at 7.00 percent per annum; • to leave unchanged the lending (Lombard) facility rate at 8.00 percent per annum and the deposit facility rate at 6.00 percent per annum; • to keep the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions. The annual inflation rate went down to 15.52 percent in February 2023, from 16.37 percent in December 2022, relatively in line with forecasts. The decrease was mainly driven by the sizeable drop in the dynamics of fuel and detalii

ING posts 2022 net result of €3,674 million, dividend of €0.389 per share

ING press release: ING posts FY2022 net result of €3,674 million,
proposed final 2022 dividend of €0.389 per share

4Q2022 profit before tax of €1,711 million; CET1 ratio remains strong at 14.5%
•
Profit before tax up 29% on 4Q2021 and 24% on 3Q2022, mainly driven by higher income
•
Higher net interest income, as a further increase in liability margins helped offset TLTRO impact this quarter
•
Risk costs declined to 17 bps of average customer lending

Full-year 2022 net result of €3,674 million, supported by growing customer base and increase in lending and deposits
•
On a full-year basis, our primary customer base grew by 585,000 detalii

BT Financial Results as at 30 September 2022

BT Financial Results as at 30 September 2022 Banca Transilvania – sustained growth in customers and operations during the first nine months of the year "We continued our robust growth in the number of clients and transactions, with a dynamic well above the market average. We have been growing steadily and continued financing companies and individuals, despite the fact that the financial market is more fraught with uncertainty than ever and
the funding costs and capital requirements are additional factors driving the uncertainty in the economy. We remain committed to our objective - to be the main supporter of the economy and of the state for the development of Romania", states Mr. Ӧmer Tetik, Chief Executive detalii