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Citu: we borrowed from the local market over 2 billion lei for the payment of salaries, pensions, social aids, bills and VAT reimbursement
The minister of finances Florin Citu says that the payment of pensions and salaries in not in danger during this period of crisis provoked by coronaviurs and that they borrowd from the local market two billion lei, money necessary for the payment of pensions, salaries, social aid.
Asked on Tuesday night at Realitatea Plus if the pensions and salaries are in danger, the minister of finances Florin Citu answered’ No, we have dealt with it and this is what I am doing everyday, I am looking financing sources, I am in contact with the financial markets, with all the international financial institutes, in this order: local market, financing on the local market and that is why I have a very good relation with the financial system in Romania with the National Bank’.
C itu talked about the loans from the local market
‘You have to know how to finance yourself and at what cost and you saw last week that we managed to get money from the local market of over 2 billion lei, money which go directly to the payment of salaries, pensions, social aids, bills and VAT reimbursement’ the minister of Finances said.
According to him, Romania's economy will have a different structure after this period passes, perhaps a healthier one on the long run, which will help us to be among the first economies in Europe.
"It is a mix. [in the behavior of the companies]. On the one hand, I understand from companies that part of the citizens will enter furlough, but the same companies also want credit lines. It is clear that there are many managers who see opportunities. We already have several examples of companies in Romania which changed or added to their production line the production of masks and other materials. There is a very high demand for the production of disinfectants. It is clear that there are companies which can benefit from this period and we are helping them. At the same time, there are companies which also see the period ahead and there are offers for investments. I say that these credit lines are very welcome and they should be seen by all those who want to invest at this moment, because they represent an opportunity. We must further build this capitalisation process. Certainly, the economy will have a different structure after this period passes, but it will be, perhaps, a healthier one, on the long run, and a structure which will also help us to be, maybe, among the first economies in Europe after this period," Citu told Realitatea Plus private television station.
He argued that the countries which will be able to immediately restart their economy will be those to immediately come back with a plus and will be the winners after this crisis.
"We continue what the MFP [the Public Finance Ministry] also announced, what we have been saying since taking over the mandate - the computerisation of the ANAF [the National Agency for Fiscal Administration]. For me, it is still a priority and if we had succeeded this thing ever since the first months, the situation today would have been much simpler. (...) today, we see the economy changing and we see how the economy of the future will look like in the next 20 years. It is the age of technology and you will see that we are all shifting, now forced, in that direction. In ten years, the structure of Romania's budget will be totally different and we're referring here to the investments we are currently making," the Finance head underscored.
Citu underscored that no construction site has been stooped in Romania so far, mentioning the discussions with the European Investment Bank (EIB) for opening the construction of regional hospitals.
"So far, no construction site has been stopped. The Transport Minister has said it very clearly that no construction site will be shut down, we continue with the investments in motorways, we have ongoing discussions with the EIB in order to open, as soon as possible, the construction of regional hospitals, thus, all these projects are on the table, nothing has changed," the Public Finance Minister said.
He underscored that authorities are prepared for two scenarios after the crisis, one in which the economy will immediately bounce back and another in which "the economy catches the flu."
"It depends how the economy will be after this period, whether it is an economy which bounces back immediately, the so called V-shape, we have a decrease and then we immediately recover. (...) Everything depends on how the economy will look like after we get out of this state of emergency. We will take the measures then, but we are prepared for both scenarios, for the scenario in which the economy recovers immediately and then, of course, we'll be injecting liquidity into the system and going on investments so that these companies recover immediately or, if the economy does not recover and is blocked, then we must return to support those who do not have a job. It all depends on when we pass this period, but I tell you that we have taken both scenarios into account, we are considering both. We don't want to be caught by surprise anymore, that's why we are ready for both scenarios," Citu also said.