Romania's Central Bank Governor Mugur Isarescu yesterday said the public debate on the economic situation via media channels was trivial, and hence very dangerous. As a result, it should end.
"The misunderstandings abound while the Romanian public needs professionals to debate on the topic more than ever. We should apply ourselves to translating into lay people language our knowledge and opinions. The trivial debates should stop at all costs. They are very dangerous," Isarescu said.
He added that economists and financiers should embark on a true fight to bring the public debate back on track. "It is to us, economists and financiers to be more vocal. Our major disadvantage, though, is that we do not provide good ratings to broadcasters," Isarescu said.
His remarks were prompted by a televised debate in which commentators ranted against Romania central bank reserves being on the rise, while the population was subjected to across the board cuts in pensions and salaries.
He went on the explain that the central bank reserves ensure the financial and exchange rate stability. "The concept of stability is similar to the concept of health. One notices its relevance when it looses it," Isarescu said.
On May 31st Romania's central bank reserves were at 31.989 billion Euro.
Severak politicians suggested using the central bank reserves to cover the budget deficit, instead of raising money from a cut in pensions and salaries.
The minister of Finance Sebastian Vladescu rejected such an option as being a viable one.
The loans Romania took from international lending institutions aimed at preserving the central bank reserves at a comfortable level and the stable exchange rate for the local currency. Part of the money, however, were directed towards balancing the budget deficit.
Romania drafted 9.3 billion Euro of the
