Romania’s central bank wants to cut the required reserve ratios for both local and foreign currency liabilities next year, governor Mugur Isarescu told a news conference, quoted by Bursa daily.
The statement was made in the context of explaining that banks hold sufficient resources to finance the real sector – and will have even more in the future. At this moment, banks have an excess of EUR 2bn that they hold on the money market [instead of extending loans to the real sector], Isarescu said.
The required reserve ratio for forex liabilities was cut from 40% before the 2008 credit crunch to 20% and there is no reason to not cut it more, Isarescu argued. The logic of high requirements before the recession was to prevent excessive forex lending, he explained.
There are some EUR 6bn in the compulsory reserves held by commercial banks at the central bank. The required reserve ratio for local currency liabilities, of 15%, should also be lowered, Isarescu stated.
Romanian natural gas transport company Transgaz will soon open an office in Chisinau to speed up the construction of Ungheni-Chisinau pipeline that will bring Romanian gas to Moldova’s main ... more
Global engine and generators manufacturer Cummins plans to relocate production from the UK to Craiova, in southwest Romania, after Brexit, Craiova mayor ... more
Nato launched a new multinational force in Craiova, southern Romania, on October 9, as part of its Forward presence in the southeastern alliance states. The move is aimed at countering ... more