A conversion of the Swiss Francs credits into the Romanian currency (lei) at the historical rate would generate 5.7 billion lei in losses (0.8 pct of the Gross Domestic Product), and the conversion of all credits in foreign currency (Francs plus Euros) at the historical rate of the moment they were granted, would generate 9.8 billion lei in losses (1.4 pct of the GDP), on Friday said the National Bank of Romania (BNR)’s governor, Mugur Isarescu (photo) in a press conference on the issues generated by the Swiss Franc’s soaring.
‘Who is going to support all these losses? Mr. Piperea perhaps (lawyer Gheorghe Piperea – editor’s note)!” the BNR governor asked rhetorically.
The central bank’s chief presented a series of calculations regarding the credits’ conversion, of which results that a conversion carried out at the historical rate plus 30 pct would mean total losses of 3.9 billion lei (0.5 pct of the GDP), in case of all the credits in Swiss Francs, and 4.2 billion lei (0.6 pct of the GDP) in case of all credits in Swiss Francs and Euros.
Mugur Isarescu warned that, in case of a credits’ conversion at historical rate, three or four banks in the system would need significant capital infusions, in which case the bank could sue the state to recover its money.
‘We had a problem with a small bank, which represented 0.5 pct of the system, the Bank of Cyprus, and we’ve learned what the contagiousness effect means,’ Isarescu explained quoted by Agerpres.