Romania Ctrl Bk Says Surplus Cash In Market To Drop Shortly

However, the situation is bound to improve in the coming period and the surplus liquidity will be put to use, Isarescu told a press conference.

"The liquidity is focused around four or five banks, because they were probably reticent in extending their liquidity surplus to banks that witness a relative deficit. We believe this will be resolved in time," he said.

"We plan to improve banks' access to liquidity, including via refinancing operations run by the central bank. The central bank is currently in the position of a debtor, but, once the lending resumes, this position will disappear," Isarescu said.

Romanian lenders parked a total of 387.3 billion lei (EUR1=RON4.2485) in overnight deposits at the central bank in 2010, nearly sevenfold compared with the previous year.

Last week, the central bank left its main interest rate unchanged at a record low of 6.25% a year for the sixth consecutive time. It also decided to maintain the current levels of the minimum reserve requirements at 15% for Romanian leu-denominated liabilities and 25% for foreign currency liabilities.

The central bank hasn't modified the minimum reserve requirements since November 2009.

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