Romanian president Basescu on European Council decision on bank recapitalization: Guarantee that subsidiaries of banking groups maintain capital level
He said at the Brussels press conference at the end of the European Council that "the Declaration on bank recapitalization has been adopted. This document is aimed at financing banks on the medium term so that medium term crediting flow for the real economy be maintained. The statement is also aimed at covering the quantity and quality of capital. (...) Top quality capital is injected in the European banking system to support not only the economy, but also the states' loan needs".
"Thus what was our main concern received an answer from member states. The host country of subsidiaries will never risk finding out that the banking market is diminished by way of capital withdrawal", Basescu said. He said the capital flows in Romania amount to 40 billion euro, of which 13.2 billion euro were used to support the state budget and the rest went to the private sector.