The stability of Romania's national currency unlikely to last very long, official deems

Publish date: 09-07-2009
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The stability of the national currency will not continue too long, according to the general manager of ING Bank Romania Misu Negritoiu, who deems the solutions applied by the central lender BNR and the International Monetary Fund are for usual situations, not for an economic crisis.

He says BNR reacted too late and quite shy in relaxing the monetary policy.

Negritoiu said he is not expecting important slashes of the main interest rate in the next period.

Romania will step out of the crisis through consumption and sales, as it needs short-term measures and there is no time to change the economic model, Negritoiu also mentioned.

Two of the examples he mentioned were expanding the old car scrap "Rabla" program and completing investments in a fund for social houses.
He also underlined there is no room for slashing taxes or making other fiscal stimulents like those in other countries, as the money was spent before the crisis in Romania, referring to the excessive budget deficit recorded last year.

Negritoiu mentioned the state has to show accurate signs in reducing the public expenses.

As for the structural funds, Negritoiu said there are two problems, the cofinancing and paying the VAT, and mentioned the VAT should be removed for the projects completed with such funds.

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