Launch of 1,000,000 ROL bill to be shortly followed by denomination

Three days after the National Bank’s announcement about the imminent release of the 1,000,000 ROL bill, Premier Adrian Nastase decided that Parliament would receive the draft law on the domestic currency’s denomination next spring.

“We made the political decision this morning, during a discussion with Premier Adrian Nastase and the NBR Governor Mugur Isarescu,” Finance minister Mihai Tanasescu said yesterday.

The announcement made last Friday by Mugur Isarescu on the launch of the 1,000,000 ROL bill took the Government by surprise, as Tanasescu said yesterday he only learnt about the central bank’s plans last Friday, from the NBR Governor.

The need to release the one million ROL bill was explained by Mugur Isarescu during yesterday’s meeting with the Premier and the Finance minister.

“There was no disagreement. The Government supports NBR’s decision to issue the 1,000,000 ROL bill, because this decision is well-grounded,” Finance minister Mihai Tanasescu said after the meeting.

Thus, by launching the ‘million,’ NBR will have one more zero to slash in 2005.

According to Tanasescu, the Finance Ministry and the central bank will start working on a denomination draft law, which should enter Parliament debates next spring and will then be endorsed, so that the central bank can make the necessary preparations by the beginning of 2005.

Although they agreed on the denomination preparations, the three officials did not reach a decision as to the number of zeroes to be slashed off the ROL’s tail – three or four. “I do not know how many zeroes will vanish from the ROL’s tail. The National Bank wants four zeroes out of the picture. It remains to be seen,” NBR Governor Mugur Isarescu said yesterday. Neither Isarescu nor Tanasescu would mention the costs triggered by the replacement of the current bank notes and coins.

“I don’t have much to say about it. If the ruling party sends such a law to Parliament, we are ready to get to work. Practically, we can start the technical implementation of the operation as soon as the next day,” National Bank of Romania Governor Mugur Isarescu said.

But why do we need a six-zero bill that would only live for a year, before the domestic currency sheds some zeros?

The official statements made in the past few weeks by the Government and the National Bank seem to point to a lack of communication between the two institutions.

Governor Mugur Isarescu first mentioned the need for the 1,000,000 ROL bill last fall. As the Government had abandoned denomination, passing it on to its successors, the central bank had to start preparing the ‘million’. razvan.voican@zf.ro ; oana.nuta@zf.ro