Yesterday, bankers leading the largest lenders on the local market were in talks, in Brussels, with representatives of the International Monetary Fund (IMF) and of the European Commission (EC) regarding the increase in share capital and providing funds for their Romanian businesses.
Contacted by Business Standard, BNR officials said that over taxation would only speed up the exit of capitals from Romania.
“This is not possible. The market is based on anticipations, and if you let the market see you are intending to take such measures, it is not good. Such a measure could accelerate exactly the effect you are trying to stop,” BNR officials who declined to have their name published said.Bankers said that the government’s measure will not stimulate local operations, especially since lenders posted a total loss worth €50 million in the first quarter of 2009.
“In a free economy, flows are entering and exiting, either if we are talking about investments or loans. I do not think that penalties or restrictive measures are capable to stimulate banks to keep their money in Romania, it’s the opposite. The advantages are more important,” said the General Manager of ING Bank Romania, Misu Negritoiu.
Bankers took €2.3 billion out of the country between September 2008 and March 2009, before signing a “gentlemen’s agreement” with the IMF in Vienna in March.
The Romanian authorities fear massive exits of financing, which could pose serious problems for the economy, after a dramatic decline in lending.
“If foreign banks, through their Romanian subsidiaries, do not realize that they have obtained extremely important profits in Romania in very good times, and now, when times are difficult, they throw the burden of the crisis on the shoulders of Romanians alone and withdraw their money, then we have the possibility to apply measures such as the «Robin Hood» tax, of overtaxing profits,” said Boc on the public radio station, according to the NewsIn agency.
The prime minister added that there are yet no signals that the lenders plan to withdraw their financing lines as a result of the cut in the cash reserve ratio (CRR).
Boc said that he hopes lending will resume as of June-July, considering the new BNR regulations which will go into effect after 24 May, which will allow lending to resume. It remains to be seen whether the banks will decide to use for lending the €800 mln which are to be released at the end of this month, after the CRR was eliminated for foreign currency liabilities with maturities exceeding two years.
The prime minister added that the government could take measures to revive lending, mainly for small and medium-sized enterprises (SME), investments in construction and infrastructure.
