Romania to take several loans from international institutions, central bank governor saysPublish date: 27-02-2009
Romania could contract several interconditioned loans from the European Union (EU), International Monetary Fund (IMF), World Bank (WB) or the European Bank for Reconstruction and Development (EBRD), possibly on one or two years, said today the country's central lender (BNR) governor Mugur Isarescu.
The governor declared the loan could be contracted on one or two years and could exceed Romania's needs, taken into account the financing gap in the private sector.
The capital inflows Romania had been counting on for years diminished worldwide. In Romania's case, if it did not diminish, it most certainly won't go up anyway, as there are still payments pending. The negative capital flows could sent our country to a zone with below zero economic growth, Isarescu explained.
The governor stressed that there won't be one single loan, but several financing sources, including the WB. He mentioned also financing for projects from institutions like the EBRD and a potential special financing to protect reserves, under the form of a foreign exchange swap from the IMF.
The central lender head said such a loan would grant Romania the possibility to increase the foreign exchange reserves without money issuance, which would put pressure on inflation.
Isarescu also stressed the importance of drawing in European money, considering that the available structural funds amount to 6 - 7 billion euros. However, he warned that Romania's capacity to manage these funds needs to be improved.
The governor said Romania has not yet sent a letter of intent to request an external loan as the central lender is still in talks with the government.
A potential loan from the International Monetary Fund (IMF) would be contracted to protect the foreign currency reserves and not to finance the economy, said Isarescu earlier this week. The governor refused to give any sums for the potential loans from each institution, but stressed the amounts recently rumored are exaggerated. The head of the central bank declared the country's need to finance the public debt to support the private sector stands between 2 and 4 billion euros.
- 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