Governor Isarescu: Solid Romanian banking system resists crisis

The Romanian economy has been able to cope significantly well with the multiple external shocks: 8-9% economic growth is by far the strongest in the EU, whilst inflation has started on a downward trend and could fall towards 6% by the end of the year, the foreign deficit appears to have stabilised, the banking system continues to grow at a fast rate, and the exchange rate appears to fluctuate within normal limits on a free market, according to Mugur Isarescu, Governor of the NBR (National Bank of Romania). The head of the central bank commented on the implications of the international financial crisis on Romania for the first time on Tuesday, in a speech given in the city of Ramnicu Valcea. He said that even though some of the parent banks had reported losses as a result of their exposure to the American banks that had filed for bankruptcy, these losses had not affected the operations of Romanian subsidiaries. Overall, Isarescu even talked about an above-expectations performance of the Romanian economy, backed by the solid domestic growth. However, he warned that it would be a mistake to be euphoric because Romania had not suffered as a result of the crisis.