Traian Basescu: "2012 can turn into maximum risk if mother banks dramatically reduce capital flows on Romanian market"

Traian Basescu: “2012 can turn into maximum risk if mother banks dramatically reduce capital flows on Romanian market”

Newsroom 15/12/2011 | 15:11

Romanian President Traian Basescu warned that “2012 may become a year of maximum risk is mother banks will reduce beyond supportability level the capital flows to Romania”. This statement was made, yesterday, during the launch of a report on Romania’s competitiveness by AmCham (American Chamber of Commerce in Romania).

Basescu went on saying that if “a modus-vivendi is reached with banks on maintaining capital flows, we will pass 2012 with flying colors”.

The president also mentioned that Romania will reduce its budgetary deficit to 1.9 percent of GDP, as the cost of money has increased beyond supportability, with interests between 7 and 8 percent. Basescu stated that an agreement has to be reached with financial institutions on due payment terms and interests.