Lending has to restart, but this time not based on foreign loans,
BNR governor’s adviser Adrian Vasilescu says.
The latest depreciation of the local currency is the result of a trend identifiable in the entire region. However, our currency has depreciated 2 per cent less than other currencies in our region, Adrian Vasilescu, adviser to the governor of the National Bank of Romania (BNR), stated at a conference on SME financing, Mediafax reports. He said a currency depreciation trend had started in the region at the beginning of the year and that the Polish zloty lost about 10 per cent, the Hungarian forint 8 per cent and the Czech crown that at some point was quite high, has lost 2 per cent of what it had gained.
The BNR official also said Romania is now in a paradoxical situation – there is an economic crisis but not a financial crisis and the distinction needs to be clear. ‘We should thank God that no bank went down in Romania, that all banks are good, that we do not have a financial crisis, which is a very important thing, because we have financial stability in a context of economic crisis’, Vasilescu added. At the same time, the central bank official also said that the lending process should restart, but this time on the basis of domestic savings by the Romanian society and not on foreign loans.
With regard to the possibility that the US may fall back into recession, Vasilescu noted that might also lead to a similar scenario in Romania, speaking of statements made recently by PM Emil Boc and businessman Dinu Patriciu, both suggesting the possibility of a new recession. ‘Because this is the world we are living in, because America generally exports wealth, but, every now and then, also exports crisis or recession’, the official also explained. When the crisis started we were ranked 26th out of 27 EU member stats in terms of per-capita income and purchasing power, ‘but Bulgarians have the intention to overtake us in 2012, they are going to show us the red flash’, Adrian Vasilescu also said, according to Wall-Street.ro.
On a different note, the BNR adviser also said Romania should accept it can no longer have welfare thanks to other countries’ savings, after annual capital entries amounting to some EUR 16 bln in 2004-2008. As soon as the crisis had kicked off, the money inflow stopped. In Vasilescu’s opinion, the slower money rotation can be explained on the one hand by the developed states ‘getting poor’ and on the other hand by the fact that major companies are waiting for the current economic cycle to end before investing. He also pointed out that the population would need to get used to the thought of entering a new economic cycle, a new normality different to the one it was used to. The new normality in Romania starts from domestic savings in the roman society – population, companies and public institutions – Vasilescu added.