The Prime Minister added the government does not intend to take those tough measures, adding that there is no sign of such intention from the foreign banks yet.
End-March, Romania agreed with the International Monetary Fund, the E.U. and other international lenders a EUR19.95 billion financial package to help it cushion the effects of the financial crisis.
After it agreed the loan terms with the Romanian authorities, the IMF representatives also obtained the written agreement of nine parent-banks of the main Romanian lenders in Vienna, who engaged not to withdraw their capital and to continue financing the Romanian economy. The banks are Erste Group, Volksbank, Raiffeisen International, Societe Generale, UniCredit, EFG Eurobank, National Bank of Greece, Alpha Bank and Piraeus.
Following the agreement with the International Monetary Fund and the European Commission, BNR has to determine the necessary additional capital for banks, based on stress tests, so that the solvency ratio of each institution is kept above 10%, a level that is two percentage points higher than the current bottom limit, of 8%.
According to banking sources, the stress tests conducted by the central bank based on the financial results at the end of 2008 show a need for additional capital of less than EUR1 billion, after the solvency ratio limit will be increased in September to 10% from the current 8%.
Last week, Romanian central bank governor Mugur Isarescu stated that the bank’s officials would go to Brussels on May 19, to discus the details of the agreement closed with parent banks in Vienna, as well as the results of the stress tests.
The Romanian banking system reported a cumulated loss of around EUR50 million in the first quarter of 2009 for the first time in the last years, due to large increases of the booked provisions in January and February, the central bank’s surveillance department director Nicolae Cinteza said end April.