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Isarescu: The 2014 - 2015 deadline for the adoption of the euro stays in place

Governor of the National Bank of Romania (BNR) Mugur Isarescu said on Thursday that this year's budget deficit target needs to be changed and that the 2014 - 2015 horizon set for the adoption of the euro is a positive deadline.

'The deficit is high, this is not about where it tends to be, this needs to be changed. We could see this from simple arithmetic: spending is 40 percent and revenues are 30 percent. But I consider that a target deficit with state arrears is the worst solution, just like a deficit without investments,' said the central bank governor.

He mentioned that the 2014 - 2015 deadline for the adoption of the euro stays in place, despite the problems of Greece. The Romanian authorities and the IMF mission are negotiating a budget deficit of 6.3 to 6.5 percent of the GDP for this year, but still have to agree on the budget gap that needs to be plugged in by collection boosting/expenditure cutting measures.

Disinflation process marked by accented reduction of free prices BNR can influence

Disinflation process in this past quarter and in the past 12 months was characterized by a steady and accented reduction of the free prices Romania's National Bank (BNR) can influence through its monetary policy, stated on Thursday BNR Governor Mugur Isarescu .'The disinflation process in this past quarter and the one in the past 12 months was characterized by two important things. On one hand, by the free prices BNR can influence through its monetary policy, they being steadily and markedly reduced. As well, we remark that this indicator, the prices from which the administered prices and the volatile prices are deducted, but also those of cigarettes and fuel, respectively those suffering major increases due to excise taxes, are drawing close to 1 percent. It is a remarkable evolution', said Isarescu.

Economic growth to be somewhere between minus something, plus something

Governor of Romania's National Bank (BNR) Mugur Isarescu stated that Romania will have an economic growth somewhere in the zero zone and he cannot provide an exact figure.'Economic growth will be somewhere between minus something, plus something, in the zero zone, but I do not want to come up with a prognosis. There are enough talk shows on this topic on the Money Channel', said BNR Governor.

According to the spring economic outlook of the European Commission (EC), Romania is to score this year an economic growth of 0.8 percent. After last year Romania posted a negative economic growth of minus 7.1 percent, the growth in 2010 will be a bit lower than the average at the level of the European Union, of 1 percent, as the Community Executive anticipated.The International Monetary Fund initially predicted an economic growth of 1.3 percent in Romania, but now it takes into account a zero growth.

Evolution of exchange rate within 5 percent margin indicates stability

Evolution of the exchange rate within a 5 percent margin indicates a stable exchange rate in Romania, stated on Thursday Governor of Romania's National Bank (BNR) Mugur Isarescu, on the occasion of the presentation of the Inflation report on the first quarter of 2010.

'As for the banking sector the exchange rate is floating within a margin of up to 5 percent. We view it as a stable exchange rate. Since 2010-start it was moving within a narrower margin', said Isarescu.

BNR Governor also noted that the behavior change on the international markets should not be reflected by the exchange rate, nor by the banking sector liquidity.'We should not let the brutal behavior changes on the international markets be reflected by the exchange rate. We hope to maintain liquidity in the banking system. Especially given that the monetary market is stabilizing', added Isarescu.

Sursa: http://www.actmedia.eu

Tags: prices percent economic growth exchange deficit bnr adoption deadline euro governor romania isarescu