NBR loses $175m in H1, 2002

The National Bank of Romania (NBR) posted accounting losses worth 5,619 billion ROL ($175 million) after the first half of last year. NBR had lost 4,162 billion ROL (about $143m, according to the average exchange rate) in 2001. The National Bank expects the losing streak to continue this year, but insists these are purely accounting, not operational losses. In fact, these are the costs the central bank must bear to see inflation drop. “The loss recorded in the accounting balance is in fact the cost of the fight against inflation, the price we have to pay to tame prices,” said Adrian Vasilescu, advisor to the NBR Governor Mugur Isarescu. ZF