Romania Could Use EU Measures To Fight Crisis, If Needed

“We are ready to adopt all the necessary measures used by the European countries, either to ensure liquidity or to increase prudential rules and to strengthen the deposits guarantee policy, if needed,” Isarescu said, after a debate with Romanian Prime Minister Calin Popescu Tariceanu.

However, the governor said that the Romanian financial system is stable and sure for the time being.

“For several reasons such as the central bank’s stubbornness to maintain severe regulation or classic products offered by the market, the banking system in Romania is stable and sure for the time being and I do not see any major changes in the near future,” Isarescu said.

Tariceanu also said the Romanian banking system has not yet been affected by the international financial crisis but may adopt several measures, if necessary.

"Romania, just like the other European countries, could adopt measures in necessity. There is no reason to discuss about definite measures as we currently have no problem for the time being," Tariceanu said.

Further asked what these measures might be, Tariceanu said that besides guaranteeing bank deposits, there are other instruments, such as state treasuries, that can be used.

On Friday, Isarescu said that the National Bank of Romania is currently watching the developments on the international financial market very carefully. "The Romanian banking system is already affected by an increase of external financing costs,” the governor mentioned.

But the impact was limited thanks to Romania’s lack of exposure on financial products which generated this turmoil, known as subprime loans, as well as to the central bank’s prudential measures and its monetary policies, Isarescu added.