Croitoru, NBR: Consumer spending needs to be cut by 5bn euros to "sweeten" the loss of financingPublish date: 11-12-2008
A significant adjustment of the current account of 4% of GDP, done in an orderly fashion, is strictly necessary to "sweeten" the manner in which foreign investors will decide to cut foreign funding in Romania, believes Lucian Croitoru, NBR Governor's advisor.
The reduction of the foreign deficit by this percentage of the GDP could generate more credibility for the policies in Romania, as it would lead to a lesser decline of the foreign funding, to less pressure on the RON to depreciate and to an about 5% economic growth. Croitoru feels this would be "the strong scenario" that would give investors the impression that Romania's economic policies are consistent.
With the international financial crisis ongoing, the appetite of foreign investors and the resources they are willing to invest in Romania are dwindling, and the foreign vulnerability is high, because of the high level of current account deficit. Under the circumstances, it is necessary to strengthen the fiscal policy and adjust the foreign imbalance.
- Insurance market stagnated in 2013 while GDP chare dropped to 1.3%
- The Romanian Leasing Market as of December 31, 2013
- Millennium Bank reports best results since its launch, helped by stronger banking income and cost cuts
- BCR cheapens First Home loans and lowers interest loans for loans in lei
- Millennium Bank's new Salary account clients receive up to 600 lei bonus and their utility bills' payment
- GarantiBank and Seamless introduce SEQR in Romania: the newest mobile payment solution
- Bancpost telecom services, now provided exclusively by Romtelecom and COSMOTE Romania
- Millennium Bank cards offer discounts in Domo stores
- BCR Supervisory Board reshuffles Management Board
- NBR decide to lower the monetary policy rate to 4.25 percent per annum
- Common appointments in Romtelecom and COSMOTE Romania
- Up to 5.5% annual interest rate for Millennium Bank's promotional three-month lei deposit
- Eurozone in recovery mode but gap between North and South still widening
- UniCredit Tiriac Bank and RBS Romania announce the successful completion of the retail clients' migration
- Millennium Bank grants First House loans in lei