Isarescu and Ponta comment on the economic fallout of Ukraine crisis

Newsroom 25/04/2014 | 13:46

Possible economic restrictions or influenced commercial exchanges may affect Romania’s exports or gas supplies but the risks generated by Russia-Ukraine tensions seem “manageable” from Romania’s point of view, according to BNR governor Mugur Isarescu.

Romania’s exports to Russia and Ukraine are limited (only 4.7 percent of total exports), which translates to 0.16 percent of GDP growing rate, an acceptable loss. Furthermore, a total blocking of the gas imports from Russia would not have tangible effects until November-December, according to the BNR presentation.

Furthermore, the BNR governor remarks that there are no big Russian companies in Romania and the country’s banking system has no direct links to Russia and Ukraine.

Prime-minister Victor Ponta said in an interview for Radio Romania Actualitati that the country has enough money and will not need to borrow more, no matter how serious the crisis in Ukraine gets.

Romania has secured the money for public pensions and wages as well as for the running of the state institutions. It will no longer has to borrow off the International Monetary Fund (IMF) or anywhere else, no matter how bad the station will get in Ukraine, Prime Minister Victor Ponta told Radio Romania Actualitati (RRA) public radio broadcaster on Thursday.

“Romania has a cash buffer so that no matter what, whether the situation in Ukraine gets worse or problems emerge elsewhere in Europe, Romania will provide the cash on its own. That means no other help, because this is not 2009 to ask the IMF or others for help. Romania can secure the payment of the public pensions and wages without any kind of difficulty,’ said Ponta.