Romania, unable to get out of crisis by itself, president Basescu says
Publish date: 01-10-2009President Traian Basescu said, on Wednesday, at a meeting he had in Fetesti, with the community of the businessmen of the county of Ialomita, south-east, that Romania does not intend to get out of the crisis by its own efforts.
"However much we will spend, it would only mean excessive debts, with doubtful results. Romania depends on the economic relaunch of the big economic powers. When these countries resume the economic growth for six months, we will also resume it, following the reopening of their markets for the Romanian markets. And if the government had had an approach of the kind we increase the industrial production, pumping money in the state budget, money taken as a loan, of course, in order the increase the production, we would not have had where to sell. One could have see only a failure in the case of such a policy," said the president.
He added that despite the fact that there are many who say that the government has to take Romania out of the economic crisis, this is not possible, because "the costs would have been huge, with quite uncertain results, and Romania cannot allow to borrow hundreds of billions for transferring money to the companies," with "the other pillar of the economic growth, consumption, being also low."
On the other hand, Traian Basescu said that if in 2004 there were 4.1 million Romanians who were living in poverty, in 2008 there were only 1.2 million, and currently there is growth in this respect.
According to the head of state, the big problems result from the massive fall in exports, notably in the countries where Romania had retail outlets, and which are also experiencing a crisis. In the context, the head of state said that the effort of the state has to go to the area risking to attain strong poverty as an effect of the economic crisis.
"As regards the policy of Romania, it was that of diminishing to a maximum the effects of the crisis and there were two major directions in this respect: the supply of much enough money to the Central Bank, BNR, in order to be able to keep the level of the exchange rate, because the depreciation was extremely bad and it would have affected the population, in general and the companies, at the same time. So most of the money had gone to the Central Bank, in order to consolidate the BNR reserve, for the rate of exchange to be able to be kept at this level," said Basescu.
He added, that, on the other hand, money had been taken from the budget, for Romania to be able to pay in due time its duties to its citizens, pensions, salaries, all the duties of the state, and, at the same time, for the continuation of investment.
Agerpres
Latest News:
- 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