No Liquidity Problems For Romania – Fin Min

Speaking in a news conference, Vladescu dismissed analysts’ speculations regarding a possible cash shortage for public wages and pensions, saying the market situation is far from dramatic.

„We don’t face any liquidity problems. On the contrary, we have agreed that the banks can lower their exposure by 5%, we allowed them a degree of flexibility,” Vladescu told reporters.

Romanian officials, along representatives of the International Monetary Fund and the EU met in Brussels Thursday with the nine parent banks of the country’s top nine lenders to review an agreement under which the banks committed to maintain their local exposure to March 2009 levels.

The participants agreed that „the strengthening of Romania’s external position allows for a degree of flexibility concerning the exposure commitments to 95% compared to end-March 2009,” the IMF and EU said in a joint statement.

Early 2009, Romania secured a EUR20 billion aid package from the IMF, the European Commission and other international lenders to cushion the effects of the recession.

The parent banks of Romania’s largest nine lenders agreed at the time to keep their overall exposure to the country unchanged by April 2011 and ensure capital adequacy levels over 10% for their subsidiaries.