The Central Bank of Romania (BNR) recommended the Ministry of Economy and Finance (MEF) to speed up the listing of state securities so as to offer an alternative if banks should face a liquidity crisis, a member with BNR’s management board said.
- Publicitate -
The thin bonds and state securities market is a weak point as BNR will shift from being a net debtor to a net creditor, by yearend, BNR management board member, Napoleon Pop said.
"The international turmoil will cause the excess of liquidity to slowly dry up," the BNR official explained.
On 6 May, MEF Minister Varujan Vosganian said he is not satisfied with the process for the listing of the state securities, as this could be done in September. Vosganian noted he wants for the listing to be made on July 15.
Pop also emphasized the best position BNR could hold, concerning the monetary policy, would be that of creditor. The BNR official explained the central bank is not taking into account a reduction of the banks’ minimum mandatory reserves, as long as overall demand is widening.
Now, BNR asks central banks for minimum mandatory reserves of 20 percent from the liabilities in lei (including the deposits from clients) and 40 percent from the foreign currency liabilities.
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