Romanian central bank governor Isarescu: no real reasons to be concerned as the exchange rate is within normal limits considering national and international environment

The Romanian banking system is stable and secure, Romania’s Central Bank Governor Mugur Isarescu said after meeting PM Calin Popescu Tariceanu to discuss about the financial crisis affecting Europe. Isarescu added that state titles are the most secure instrument at the moment.

Tariceanu underlined, once again, that he would not support the unreasonable increase in wages if this was not sustainable in the long run. The meeting was held as leaders of the most important European economic powers met on Saturday in Paris to discuss the financial crisis.

Calin Popescu Tariceanu reiterated the fact that he would not approve an irresponsible bill passed by the Parliament as it has no economic sustainability, referring to the bill recently approved to increase the teachers’ wages by 50%.

Tariceanu declared that currently Romania had no financial problem and, if it will be the case, the government would adopt emergency measures to solve it.

At his turn, Mugur Isarescu declared that banks were more than convinced that it is better to play on the safe side. He added that if it will be case, he was ready to force banks to adopt a more prudent policy. Isarescu agreed with the Prime Minister in terms of the salary increase and added that no decision should be taken until all fiscal measures are known.