RRI Live!

Listen to Radio Romania International Live

Measures to restart economy

The head of the Central Banks financial stability department, Eugen Radulescu, has explained why the institution is prudent when it comes to monetary policy..

Measures to restart economy
Measures to restart economy

, 05.06.2020, 13:50

The Romanian Central Bank’s monetary policy must be prudent, says Eugen Radulescu, head of the institution’s financial stability department. In his opinion, a more aggressive cut in interest rates might trigger almost immediately a serious depreciation of the exchange rate and undermine the trust of foreign partners. The dimension of the budget deficit and current account deficit and the perspective of their increase have prompted the most important rating agencies to change their forecast for Romania from stable to negative, which is dangerously close to being removed from the list of countries recommended for investment, Radulescu explains. Also, according to the bank official, the impact this negative perspective could have on the economy and particularly on its financial situation is terrible, as the country’s capacity to finance the deficit on the external market would seriously deteriorate and the cost of loans would explode. Adding to this is the fact that Romania entered the pandemic period without budgetary or medical reserves.



Moreover, Radulescu says that the Romanian Central Bank has had a rather prudent behavior, as it increased liquidity in the banking system and reduced the reference interest rate. On the other hand, following Thursday’s government meeting in Bucharest, authorities have announced that the SMEs invest programme has been improved and the budget allotted to it can be increased, so that the number of companies accessing these funds could triple in a matter of weeks. Over 3 thousand companies have received financing so far, totaling around 520 million euros. Finance Minister Florin Citu has announced that the programme can support 40 thousand companies at the most, and, if there is the case, the government will earmark more funds to it at the next budget adjustment.



A memorandum was also adopted at Thursday’s meeting, based on which normative acts implementing a similar programme aimed at supporting large companies can be drawn up. Minister Florin Citu explains what kind of companies can apply for funding: “Part of the SME category are companies with turnovers of more than 4.1 million euros in 2019 or which are part of the large company category — and here we included a category of companies that have not been included in the SME programme or any other programme — companies that are affiliated entities or partners and have over 250 employees. So now, with this programme, we have covered all companies in Romania that can access financing.”



Around 1.6 billion euros are available under the large company programme, which will become operational in 4 weeks at the most. (translated by Elena Enache)


Întrevederea premierului Ilie Bolojan cu reprezentații Asociației Magistraților din România
Today in the News Tuesday, 19 August 2025

Talks over the new fiscal budgetary measures

A new round of talks has taken place in Bucharest over package 2 of the fiscal measures aimed at curbing Romania’s budget deficit, for which the...

Talks over the new fiscal budgetary measures
Photo credits: Septimiu / pixabay.com
Today in the News Monday, 18 August 2025

Romania, an investment-grade country

  Preceded by a first set of tough fiscal measures taken by the Romanian government and with a second one under way, the assessment by the Fitch...

Romania, an investment-grade country
Photo: pixabay.com
Today in the News Thursday, 14 August 2025

What kind of agreement would be needed for Ukraine?

A series of meetings for Ukraine and its future have taken place both physically and online between the Western leaders ahead of the upcoming...

What kind of agreement would be needed for Ukraine?
Photo: Tumisu / pixabay.com
Today in the News Wednesday, 13 August 2025

Romania is in for higher inflation

Prices are on the rise in Romania and what people have been seeing for a month now has also been confirmed by the National Institute for Statistics....

Romania is in for higher inflation
Today in the News Tuesday, 12 August 2025

Romania and crisis resolution

Romania supports a solution based on full respect for Ukraine’s sovereignty, independence, and territorial integrity, with Ukraine fully...

Romania and crisis resolution
Today in the News Monday, 11 August 2025

Romania fulfils its duty in the Schengen area

Romania became a full-fledged member of the world’s biggest free-movement area on 1st January 2025, after the EU’s Justice and Home Affairs...

Romania fulfils its duty in the Schengen area
Today in the News Friday, 08 August 2025

Romania’s Foreign Minister on a visit to Kyiv

Romania’s Foreign Minister Oana Ţoiu paid a visit to Kyiv on Thursday, where she met with president Volodymyr Zelenskyy, Prime Minister Yulia...

Romania’s Foreign Minister on a visit to Kyiv
Today in the News Thursday, 07 August 2025

Teachers voice their grievances

Although they are on a well-deserved vacation, teachers in Romania are thinking about what will happen in education from autumn. The first package of...

Teachers voice their grievances

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company