BANCI | ENGLISH

Press release issued by the IMF Office in Romania

Autor: Bancherul.ro
2009-02-04 18:03

PRESS NOTICE

An IMF mission held a regular staff visit during January 27-February 4, 2009. Romania is now being increasingly affected by the global recession. While growth remained high in the first three quarters of 2008, output indicators deteriorated rapidly in the last months of the year. Exports began to tumble, credit availability tightened for firms and households, and domestic consumption and investment are poised to fall. Industrial output is dropping, and business and consumer confidence have deteriorated. Thus economic activity will be weak, and GDP growth may well turn negative in 2009, with a moderate recovery only toward the end of the year or early-2010. While it is true that uncertainties surrounding the forecast are high, we believe that the balance of risks is on the downside.

International problems were the trigger for the downturn, but longstanding imbalances within the Romanian economy are aggravating its effects at home. Balance of payments and government deficits have heightened the vulnerability to external shocks, while slow action on structural reforms has left the economy less productive and less flexible in its ability to respond to the downturn. Public spending policies have aggravated the current economic difficulties. Government spending doubled between 2005 and 2008, and the public sector wage bill nearly tripled over these three years due to high wage increases combined with a large increase in government employment. Now, as the country enters a downturn, an easing of fiscal policy to cushion the downturn is unfortunately no longer possible. Spending is already too high and the government's ability to finance a large deficit has dried up.

In this context, we see the following policy requirements:

The mission strongly supports the government's declared objective of reducing the fiscal deficit to around 2 percent of GDP. However, the 2009 budget is based on optimistic assumptions for economic growth and tax collections, suggesting that further efforts will be required to reach that target.

We support the NBR's intention to remain focused on achieving its inflation objective. The bank's inflation target was missed yet again in 2008, in part due to the unexpectedly expansionary fiscal policy and the high commodity and world energy prices early in the year. Looking forward, the NBR should give priority to bringing inflation into the target band as soon as possible. The monetary authority has little room to ease monetary policy until a credible macroeconomic policy package is in place to stabilize the economy and reduce the fiscal deficit. And even then, the central bank should only move to gradual policy easing if balance of payments pressures abate.

Safeguarding financial stability requires continued close monitoring of banks' risk management, capacity to absorb adverse shocks, and capital adequacy. As in other countries, institutions charged with the functioning of the financial system need to be fully prepared for contingencies, including in the context of recent EU efforts to step up preparedness for cross-border financial spillovers. The NBR should continue to act in order to ease liquidity imbalances in the banking system.

Credible fiscal, monetary, and financial sector policies will significantly improve Romania's chances of weathering the current economic storm. However, risks will remain high. Firm government implementation of policies is essential to restore public confidence and economic growth. Structural reforms need to be re-started to make the economy more productive, and able to take advantage of opportunities in the eventual economic recovery. We look forward to continued cooperation with the Romanian authorities.

Bucharest, February 4, 2009

Comentarii

Adauga un comentariu

Adauga un comentariu folosind contul de Facebook

Alte stiri din categoria: ENGLISH

Merger of Alpha Bank and UniCredit Bank Romania

Press Release: "Alpha Services and Holdings announces a strategic partnership with UniCredit in Romania Merger of Alpha Bank Romania and UniCredit Bank Romania and creation of third largest bank in Romania by total assets, with Alpha Bank retaining a detalii

National Bank of Romania (NBR) Board decisions on monetary policy

NBR Board decisions on monetary policy In its meeting of 4 April 2023, the Board of the National Bank of Romania decided: • to keep the monetary policy rate at 7.00 percent per annum; • to leave unchanged the lending (Lombard) facility rate at 8.00 percent per annum and the deposit facility rate at 6.00 percent per annum; • to keep the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions. The annual inflation rate went down to 15.52 percent in February 2023, from 16.37 percent in December 2022, relatively in line with forecasts. The decrease was mainly driven by the sizeable drop in the dynamics of fuel and detalii

ING posts 2022 net result of €3,674 million, dividend of €0.389 per share

ING press release: ING posts FY2022 net result of €3,674 million,
proposed final 2022 dividend of €0.389 per share

4Q2022 profit before tax of €1,711 million; CET1 ratio remains strong at 14.5%
•
Profit before tax up 29% on 4Q2021 and 24% on 3Q2022, mainly driven by higher income
•
Higher net interest income, as a further increase in liability margins helped offset TLTRO impact this quarter
•
Risk costs declined to 17 bps of average customer lending

Full-year 2022 net result of €3,674 million, supported by growing customer base and increase in lending and deposits
•
On a full-year basis, our primary customer base grew by 585,000 detalii

BT Financial Results as at 30 September 2022

BT Financial Results as at 30 September 2022 Banca Transilvania – sustained growth in customers and operations during the first nine months of the year "We continued our robust growth in the number of clients and transactions, with a dynamic well above the market average. We have been growing steadily and continued financing companies and individuals, despite the fact that the financial market is more fraught with uncertainty than ever and
the funding costs and capital requirements are additional factors driving the uncertainty in the economy. We remain committed to our objective - to be the main supporter of the economy and of the state for the development of Romania", states Mr. Ӧmer Tetik, Chief Executive detalii

Vezi toate stirile

21.11.2024

1 EUR = lei
1 USD = lei

Sursa BNR

Profil de Bancher

Enzo Pellegrino, Director General
Intesa Sanpaolo Bank

Enzo Pellegrino a fost numit in octombrie 2013 la ... vezi profil

Toate Profilele

Profil de Banca

CEC Bank

vezi detalii

Toate Bancile

Filmul Parking, un cliseu plictisitor

Toate stirile

ING Bank

Toate stirile

Ultimele Comentarii

LOAN OFFER
Buna ziua Aceasta pentru a informa publicul larg că oferim împrumuturi celor care au nevoie de ... detalii
!
Greu cu limba romana! Ce legatura are cuvantul "ecosistem" din limba romana cu sistemul de plati ... detalii
Bancnote vechi
Am 2 bancnote vechi:1-1000000lei;2-5000000lei Anul ... detalii
Bancnote vechi
Numar de ... detalii
Bancnote vechi
Am 3 bancnote vechi:1-1000000lei;1-5000lei;1-100000;mai multe bancnote cu eclipsa de ... detalii

Nume	*
E-mail	*
E-mail prieten	*
Mesaj
Cod validare	*
	Tastati codul din imagine (doar cifre)
	195.154.184.126