The Central Bank (BNR) is not willing to push back the maturity dates of repo operations or to diminish the reserves requirement (RMO) soon, BNR Governor Mugur Isarescu said in a press conference, quoted by zf.ro. According to the governor, even if the maturity dates of repo operations were pushed back, there would still be some criticism and discussions would go on. “If we extended (the interval) to two weeks, they would ask for a month. If we did it on six months, they would ask for three years. I don’t think we would alleviate the dispute. There will always be some who will criticise us. Let’s see what this would bring us in terms of collaterals for three years.” Isarescu warned that one must not draw a comparison between the operations conducted by the ECB and those that can be made by BNR. According to the governor, diminishing the RMO would increase the liquidity available in the entire banking system. He assured that the Central Bank would “release” these sums at the “right moment,” with positive effects for the economic growth. Furthermore, BNR does not intend to offer cash to commercial banks based on their real estate portfolios, as bankers “must do real banking” and manage the risks they took, BNR Governor Mugur Isarescu added. “The Central Bank is not willing to take over the risks, while bankers <<wash their hands>>,” the governor concluded.
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