Unless it adopts the euro, Romania has no solutions for the problems of an economy that already operates with the European currency, while we are arguing over a RON-denominated interest, which now only has an impact on a marginal market, says Misu Negritoiu, general manager of ING Bank.
"Hungary can afford the luxury of not thinking about the euro, because it has markets that operate in forints, Poland has markets that use zlotys, but we don't have markets that work with RON. I think it is feasible for us to make the most important corrections in 2010-2012 because we primarily need economy's basic balances to be re-established, not actual convergence, which we will never achieve."
He believes the NBR (National Bank of Romania) could do more to stimulate lending in RON by cutting its interest rate, but, as long as its message is that the RON will be stable in relation to the euro, and clients see the interest rate gap, they are sure to take out a loan in euros, because its cost is preferable even if the RON depreciates further. The banker says beneath the cover of the monetary policy's relative stability, dramatic things happen deep inside the real economy, there is a struggle to avoid bankruptcy, a fight for survival.
"Very few companies are thinking about taking out new loans, most are concerned about restructuring already accumulated debt. There is no substance to talks about the so-called conflict between banks and companies, because we are even more interested in a business not going bankrupt than its owners, considering our exposure. There are, however, situations when they either don't listen to us, or continue to ask for money, although the volume of sales has gone down significantly." He believes the Government is unable to manage complex measures meant to stimulate the economy, and that the crisis will end on its own.
"The idea that
