The effects of the international financial crisis count for most of the headlines on Thursday, from the shut down of the Bucharest Stock Exchange to the price Romanians will pay at the end of the month to cover the losses. The good news is that the banks have absolutely no problem with the cash.
The Romanian Government decided on Wednesday to increase the guarantee level for bank deposits from 20,000 to 50,000 Euros, thus aligning to the European states that already made the same move, all newspapers inform.
Still, the main problem is not with the deposits, but with the spending. The average Romanian citizen will pay some 200 RON more every month for his food, leasing payments, bank credits and phone bill, due to the fast depreciation of the national currency, Gandul notes.
At the same time, a Central Bank official, Nicolae Cinteza, publicly declared on Wednesday that all banks operating in Romania have a normal cash flow and there is no reason for the populace to start withdrawing money. The intervention came as a response to the public statement made by Prime Minister Calin Popescu Tariceanu, who said he has withdrawn his money from banks and invested it in state bonds, which are 100% guaranteed, Evenimentul Zilei reads.
Wednesday was a rough day for all international markets, most newspapers noting that European stock exchanges dropped over 7%, while the stock exchanges in Moscow was suspended immediately after opening.
When it comes to Romania, Cotidianul comments that "The stock exchange went into coma and missed the resuscitation opportunity". After seeing all transaction suspended, the stock exchange remained closed until this morning, although is could have re-opened after 30 minutes and follow the trends in Western Europe. The futures market in Sibiu was also suspended until Thursday.
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