BNR governor: We are doomed to prudent optimism this year

 

 

Bucharest, March 4 /Agerpres/ - In 2009 Romania will have a moderate economic growth, said on Wednesday Governor of the National Bank of Romania, Mugur Isarescu, present at the meeting between President Traian Basescu and representatives of the most important banks in Romania at the seat of the Romanian Banking Institute.

"This year we are doomed to keep prudently optimistic because this is for the best of Romanian economy," the governor of the National Bank of Romania (BNR) declared.

The central bank governor mentioned that capital flows will not turn negative in 2009 and that the renewal rate of financing lines from parent banks to local subsidiaries is higher than 90 pct. Isarescu mentioned that BNR will do its utmost for the banking system to operate smoothly and that in 2009 banks will get involved in governmental investment projects, whilst the administrative capacity for the absorption of community funds will improve.

As for Romania's possibly seeking foreign financing from the European Commission and other international bodies, the governor said that this requires high responsibility: 'Foreign financing implies a negotiation effort that needs to be handled with full responsibility by mass media too, given that Romania needs to absorb 30 bln euros in community funds until 2014, a figure we must consider for the future loans engaged by the state,' said Mugur Isarescu.

President Traian Basescu said that Romania will report economic growth in 2009, that will stand at 1.5-2 percent.

"Despite the estimates according to which Romania will have negative economic growth in 2009, I remain optimistic about economic growth of 1.5-2 percent," said Romania's president.

Traian Basescu encouraged small investors and the population to resort to the banking sector, which, given the rise in the financing demands, will adjust interest rates.

Traian Basescu also said that the promotion of the economic crisis prompted the population to make savings. In this context, the head of the state said that the Romanian banking system is solid and able to finance the Romanian economy. On the other hand, Basescu said that the state might intervene to determine the reimbursement of loans by the business operators who delay the return of the sums.

"My appeal is that all those who do not have problems of reimbursement should pay, in order to protect the banking system. I will examine the possibility of the state's drive for those who, deliberately, do not pay back the loans, to be stimulated to do so," said the Romanian President.

 

[Source: Romanian National News Agency AGERPRES ]