Romania Ctrl Bk Says Surplus Cash In Market To Drop Shortly

Romanian liquidity excess in the interbank market is mostly due to a cluster of four to five banks that show reserve in lending funds to their peers, central bank governor Mugur Isarescu said Monday.


Imaginea articolului Romania Ctrl Bk Says Surplus Cash In Market To Drop Shortly

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.

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at


The free download of the press materials (text, photo and / or video), bearers of intellectual property rights, is approved by only within 250 signs. Spaces and URL / hyperlink are not taken into account when counting signs. The collection of information can only be done in accordance with the terms agreed and mentioned here