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Romania Ctrl Bk Cuts Forex Reserve Requirements To 25%

Romania’s central bank on Monday lowered the minimum reserve requirements on foreign currency-denominated liabilities to 25% from 30%, in a move to counter the imbalances following delayed loan tranches from the International Monetary Fund and other lenders.
Romania Ctrl Bk Cuts Forex Reserve Requirements To 25%
16 nov. 2009, 17:15, English

„Given the delayed external inflows, the financing conditions on the local banking system must be properly adjusted to cover the borrowing needs of the government sector for the last part of the year, while maintaining the macroeconomic balances,” the central bank said.

Romania was scheduled to receive EUR2.5 billion from the IMF and the European Commission by year-end, but the two lenders postponed new disbursement until the country has a proper government in place.

The central bank’s Board held Monday a special meeting to analyze the impact of the delay in IMF-led loan.

The new reserve requirements are valid starting with the November 24-December 23 maintenance period.

At the latest meeting on monetary policy issues November 3, Romania’s central bank kept its monetary policy rate unchanged at 8% on the year and left the minimum reserve requirements at 30% for foreign currency liabilities and at 15% for liabilities in lei.

The next meeting dedicated to monetary policy issues is scheduled for January 5.