President Basescu: BNR is being controlled by the Government. IMF made a mistake

President Traian Basescu warned the Central Bank “to get out from under the control of a corrupt Goverment”, criticizing the financial institution for the “electoRate” promoted by Victor Ponta during the IMF negotiations.

“Loan shark” state: The Government’s newest debt support scheme. Isarescu weighs in

“I noticed Victor Ponta’s thank-you comments addressed to the BNR governor, regarding their two month work on the electoRate. I couldn’t believe the National Bank could be involved in this electoral project, because it is a forgery, a hoax for those who will benefit from it. I have checked and indeed it started with BNR. I don’t want to see the honey-tongued BNR spokesperson explaining to us how BNR ate the garlic but their breath doesn’t smell”, the president commented.

Asked if in his opinion, BNR is getting involved in politics, Basescu answered: “I never assumed that about them, but I see all they need is for the Government to add a little pressure. (…) Although they knew it was not the best solution, they changed their speech and argued we need this measure to stimulate consumption”.

According to the president, the idea to initiate the “electoRate” was launched after a meeting Basescu had with the IMF, along with the National Bank and the Budget Minister, Liviu Voinea.

Read more about

Leonardo Badea (BNR): Economic structure, growth dynamics, and the strategic channeling of investments: a regional perspective

read more

“The National Bank of Romania should get out from under a corrupt Government’s control immediately. Immediately. I know what their prestige is, the financial institutions know that BNR was involved in the procedure, but I personally am not damaging BNR more then they have damaged themselves”, Basescu continued.

IMF backs Romanian measures to boost consumption

The president was not shy about criticizing the IMF for accepting this “solution”:

“I will not hesitate to say it: the fund made a mistake accepting this solution.  The lady who led the delegation, inexperienced probably, was happy she found an innovative solution. No, madame, I will tell you, the president of this country that you travel to on missions, my experience is telling me it is a mistake, and the lady should be experienced enough to lead an IMF delegation”, Basescu commented.

Furthermore, the president says he’ll refuse to sign the memorandum and letter of intent if the “electoRate” is included, since it is a “forgery”

“These poor people with small income, that have a RON 500 rate and Ponta comes in and reduces it to RON 250, they will still be paying that interest rate, only the time period is extended. If they calculate how much interest they’re paying, they’ll discover they would be paying more than if they kept up their payments”.