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Isarescu: there is a liquidity surplus of 3 billion euro on the market

Governor of the National Bank of Romania (BNR) Mugur Isarescu stated on Tuesday that there is a liquidity surplus of 3 billion euro on the market, to which as much is added in reserve requirements. 

"There is money. I do a simple calculation: there is a liquidity surplus of almost three billion on the market, almost the same amount in the reserve requirements, which remained to 8 percent. It should decline towards 2 percent. Can anybody say that there is no money? And the ratio between loans and deposits is less than an unit. It became less than an unit. There are many more savings that loans and we are still yelling that the state will come and take the money, making loans from the market. The ratio between loans and interests, which was improper, thus more loans than Romania's economy could save, 150 percent, in some banks 300 percent, through this deleveraging, it became less than an unit," he said. 

According to the Governor, the rest of the money could be used for exporting capital, but it didn't get there. 

Mugur Isarescu assured that the Central Bank won't start increasing the interests before the inflation returns. 

"The National Bank will not start to increase the loans before a returning of inflation, which, statistically speaking, it's inevitable - and it is inevitable with what is going on in the world. But we will be very careful so the inflation won't go beyond our thresholds (...)," the BNR head stated.