Romania's representative to the IMF: the banking system will recover in a year, a year and a half

Currently, both Eastern and Western Europe passed the toughest periods and even though the crisis is not over yet, trust is slowly regained among banks, companies and people, Romania representative to the IMF declared in a seminar. He added that the crisis in Romania lead to the conclusion that the reform of the fiscal-budgetary system is necessary. He added that Romania will not be able to move forward without it. Follow Tanasescu’s main declarations.

• the crisis is over, but risks come from the lack of reform in the budgetary sector
• Romania’s banking system will recover in one or one and a half years
• We need to redefine the social insurance system in Romania. Currently, Transports offer free travels to those working in Energy, Transports and Labor ministry. We do not know whether the money are used properly
• To adopt the euro, we need to be responsible and have a certain established order
• It is worrying that the public debt doubled in two years. We do not need to exceed 35% of GDP in debt
• Foreign banks will maintain their capital in Romania but Romania’s capital needs to become an alternative to the foreign one

Tanasescu said that the biggest challenge for the year is to maintain an equilibrium between pressures over inflation and pressures over the national currency. He said that Greek banks in Romania are very well, despite the problems Greece faces.