Loading ...President Traian Basescu said on Wednesday that the national leu currency will appreciate in the upcoming period and that the best moment might be May.
'I believe that the Romania's national currency will strengthen a bit, at least in the upcoming period. The best moment for leu is May, when the International Monetary Fund will transfer 5 billion euros into the accounts of the central bank,' said Traian Basescu on Wednesday at a roundtable called 'Solutions for Romania to overcome the crisis and the rapid absorption of European funds.'
'I believe that the Romania's national currency will strengthen a bit, at least in the upcoming period. The best moment for leu is May, when the International Monetary Fund will transfer 5 billion euros into the accounts of the central bank,' said Traian Basescu on Wednesday at a roundtable called 'Solutions for Romania to overcome the crisis and the rapid absorption of European funds.'
Basescu said that that Romania wanted to contract a loan from the EU to cover the needs of the state budget so that the Ministry of Public Finance should no longer draw all the resources from the market for the expenditures which it had planned, leaving the business operators the liquidities which banks can provide.
Basescu said that this would have tow effects. The depreciation of the national currency will be better kept under control and the establishment of liquidities on the market will contribute to the shrinkage in the commercial banks' interest rates.
Basescu said liquidity is necessary considering that at the beginning of the year, the Ministry of Public Finance had amassed a bulk of the interbanking system. The head of the Romanian state stressed that Romania is not in the situation of resorting to help, but it concluded a preventive agreement.
Traian Basescu said that 13 billion euros out of the 20 billion euros that will be borrowed would be received in installments, so that the first tranche worth 5 billion euros will enter the reserves of the National bank of Romanai (BNR) in May.
Traian Basescu said that 13 billion euros out of the 20 billion euros that will be borrowed would be received in installments, so that the first tranche worth 5 billion euros will enter the reserves of the National bank of Romanai (BNR) in May.
The Romanian President underscored that at present the Central Bank has reserves worth some 26-27 billion euros and that from this sum, 12 billion euros represent the money of the commercial banks.
'We cannot ask them to endorse the economy with money, considering we are keeping 40 percent of their resources, which are in BNR's reserve, therefore, the central bank has to supplement the reserve from sources from the IMF, so that gradually, if necessary, be able to dwindle the reserves of the commercial banks from the central bank, in order to provide money for the economy,' said Basescu.
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