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Romanian PM Repeats Threat To Bks Withdrawing Funds

Prime Minister Emil Boc on Friday reiterated his threat to banks that would not keep their financing lines in Romania, by saying the government can apply harsh fiscal policies if lenders do not support the local economy, though he hopes such measures won't be needed.
Romanian PM Repeats Threat To Bks Withdrawing Funds
26 iun. 2009, 18:14, English

“We hope that banks act as needed in times of crisis, considering Romania’s economic status. We do not have a direct instrument to order banks, but we can have alternative means to draw a fiscal policy through which banks can suffer if they do not support the government and the population to overcome the crisis. You know what I mean, the famous ‘Robin Hood’ (over taxation, e.n.), but I hope it won’t be the case,” Boc said in a conference.
 
Boc repeated the idea of overtaxation when talking about the farmers’ difficulties to access European funds as they do not have the capacity to ensure co-financing due to harsh lending conditions.
 
Boc said in May that the Romanian government would implement tougher measures, like over-taxing the profits obtained by foreign banks in Romania, if they do not keep their financing lines in the country.
 
The Prime Minister said at that time there are no clear signals that banks would withdraw their finance, but “many said there are fears”.
 
Lending activity could revive as of June or July, Boc added.