Loading ...Romania's need for external financing is estimated within the limits of a quite large range, between 8 and 10 billion euros, which is seen as a decent amount to back up Romania's forex reserves, ING Bank Romania CEO Misu Negritoiu said on Tuesday upon releasing the financial results of ING Bank. 'We are supporting the idea of Romania raising a loan from the International Monetary Fund and the European Union that will help strengthen the Romanian economy and make lending easier and more predictable. There are two components about the financing needs, a quantitative and a qualitative one.
As regards the quality component, external financing will improve the country rating. In terms of quantity, we mean first of all backing up Romania's forex reserves and ING specialists estimate the need within quite a large range from between 9 billion and 25 billion euros, depending on the policy of the National Bank of Romania (BNR) for forex reserves preservation,' said Negritoiu.
As regards a cut in the interest rates charged on loans, the ING Romania official mentioned that mutations are expected in the real economy and banks, as intermediaries between those owning money in excess and those needed it, have to manage the money accordingly. 'Interest rates are determined by the free market mechanism, but markets today are quite broken and separated. There should be no finger pointing to banks for their charging high interest rates,' argued Negritoiu.
ING Romania has reported a 60-percent rise in its 2008 loan portfolio, a 55-percent increase in net earnings and a 66-percent surge in gross profits. ING Bank Romania's 2008 net earnings stood at RON 537 billion for assets totalling RON 11.09 billion.
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