Romanian Central Bank governor Mugur Isarescu: I can modify the legislation and dismiss bankers that increase interests without solid ground

Miercuri, 22 octombrie 2008, 20:30 English | Business

Romania's National Central Bank governor Mugur Isarescu threatened on Wednesday that he can amend the legislation to dismiss bankers that endanger the security of a bank. On Wednesday, banks failed to loan each other and in the market, financing was accompanied of interests of even 600% because speculators want to pressure exchange rates to increase, Mugur Isarescu added, quoted by Romanian TV news Antena 3.

The governor declared that the credit market blockage was initiated by three big banks that prefer to maintain interests high because they need to back up speculators that lose a lot of money with the decrease of the Romanian currency.

Isarescu however, is determined to sanction those banks that fail to play fair because, he said, they endanger their clients by increasing their interest rates for credits too high. On the other hand, Romania's central bank governor declared that the market has enough liquidity and those arguing the contrary, lie.