Tuesday, October 14, 2008

Romania Not Affected by Financial Turmoil


13 October 2008
Bucharest _ Local banks do not have problems with liquidity and the global economic crisis is affecting Romania at only a very minor level, Romania's central bank governor Mugur Isarescu said on Monday.

During an extraordinary press conference Isarescu aimed to calm panic among the local population. "These are only rumors. Risky opinions on television put forward by so-called economic analysts have spread nervousness among the local population," but Romania is not facing a crisis, he said.

"I can assure markets and local depositors that Romania's banks are stable and have sufficient liquidity to weather any crisis," Isarescu emphasised.

In a related development, the Romanian government says it plans to draft legislation that will increase bank deposit guarantees to €50,000, in line with the European Union's coordinated action against the global financial crisis.

The country currently guarantees deposits of up to €20,000. Some analysts said however that the high level of foreign bank ownership in the region carries some risks.

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