BUSINESS COMPANIES ECONOMY FINANCE&BANKING

Adrian Vasilescu: EUR 4 billion have been brought to Romania by the shareholders of the banks, while the governments and the public opinion were shouting that the banks are taking out money from the country

Adrian Vasilescu, the counselor of the Governor of the National Bank of Romania (BNR), Mugur Isarescu, stated on Saturday at a Digi24 TV show that, although in other countries, the state saved the banks with the taxpayers’ money, when they were in danger during the crisis, in Romania, not even one RON was taken out from someone’s pocket to save a bank.

Vasilescu pointed out that EUR 4 billion have been brought to Romania by the shareholders of the banks, while the governments and the public opinion were shouting that the banks are taking out money from the country.

“The banks in Romania had many situations during the crisis, I which they were hit very badly. The banks must have a certain solvency indicator. When this solvency indicator drops, the alarm is sounded. It means those banks are in danger. Well, during the crisis, this solvency indicator dropped many times in many countries, in America, in UK and in many developed countries. When there was a danger that the solvency indicators of certain banks are going to drop, they used the money of the citizens, the taxpayers, they collected money to the budget and they saved the banks with this money. Why did they do that? Because if banks collapse in a country, the entire economy follows them unavoidably”, Adrian Vasilescu explained.

He mentioned that “there were big countries that took money from citizens, bringing to the budget, and thus saving the banks, to save the economy”.

“In Romania, not even one RON was taken out from someone’s pocket and brought to the budget to save a bank. Whenever the banks were in danger, BNR had only one way to act: it called the shareholders of that bank, wherever they were, in Vienna, in Athens, in Amsterdam, and told them: ‘Please note that the solvency level is going down, you must bring capital’. And they brought capital with no exceptions. During the crisis, EUR 4 billion have been brought to Romania from abroad, while the governments and the public opinion were shouting that the banks are taking out money from the country. The shareholders from abroad brought EUR 4 billion to support the banks from here”, the NBR Governor’s counselor stressed.

Adrian Vasilescu said he doesn’t understand the stake of the GEO 114 issued by the Government at the end of the last year, which establishes the so-called “tax on greed”.

He stressed that the ordinance could cause a certain crisis in the banking system and calculations are currently being made within BNR, to see its impact.

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