Romanian Ctrl Bk May Cut Min Required Reserves Ratio Before IMF 1st Loan Tranche

"It is expected to happen this way (reducing the minimum required reserves ratio – e.n.). I personally believe that if the talks in Vienna are completed in an enough comfortable manner, we could see some ratio movements even before IMF disburses the first tranche," Ghetea told MEDIAFAX.

The sudden movements of the minimum required reserves ratio are never indicated, he added.

"The sudden movements mean variations in the minimum required reserves ratio by 5 percentage points," Ghetea explained.

Premier Emil Boc said Wednesday the minimum required reserves ratio set up with the central bank will be cut "by a small percentage," fueled by the loand from IMF and the EC.

The IMF mission to Bucharest will meet in Vienna Thursday the main foreign banks operating in Romania to ask them to keep funds in the country and to ask for a capital "buffer," the IMF’s mission chief to Romania Jeffrey Franks said Wednesday.

Banking sources told MEDIAFAX last week that the IMF delegation will meet Thursday in Vienna the heads of the ten largest banking groups operating in Romania to obtain an accord they will continue to support their local units.

Romanian President Traian Basescu said March 11 that the central bank would close a pact with the parent banks to keep the financing lines granted to their local units if the foreign currency minimum required reserve ratio might be cut, after Romania gets a loan from the IMF and the EU.

The president said that no money would be released from the National Bank of Romania, or BNR, reserves without this pact.

The minimum required reserves ratio for foreign currency-denominated liabilities is currently at 40%.