Greece's problems are shaking financial markets again, as a result of pressure from Standard&Poor's rating agency. Romania's Central Bank Governor Mugur Isarescu says Greek-held banks are well capitalised and have no cash-flow problems.
The seven banks with Greek shareholders in Romania are very well capitalised and have no cash flow problems, NBR Governor Mugur Isarescu said yesterday after the downgrading of Greece's sovereign rating into junk territory by the US-based Standard& Poor's (S&P) agency sent a shockwave through international financial markets, also felt in Bucharest.
"There is risk aversion, there is also concern, but there is no reason to exaggerate. External influences cannot be denied and I do not deny them either. We are living in a globalised world, we opened our capital accounts and there will definitely be some influences," Isarescu said, urging calm and dismissing assessments of Greece as exaggerations.
Greek banks own 17% of the banking assets in Romania, that is almost 14 billion euros, with Alpha and Bancpost (EFG Eurobank subsidiary) among the top ten players.
S&P's decision made investors extremely nervous, the yield of two-year Greek bonds jumped to 30% a year, from 13% two days ago, while stock markets across Europe witnessed declines by as much as 4% on Tuesday night and early yesterday.
On Bucharest's interbank market, the euro rose from 4.13 RON to 4.15 RON yesterday, stopped only by the sales of foreign currency most likely conducted by the National Bank, dealers say.
Greece's problems are shaking financial markets again, as a result of pressure from Standard&Poor's rating agency. Romania's Central Bank Governor Mugur Isarescu says Greek-held banks are well capitalised and have no cash-flow problems.
The seven banks with Greek shareholders in Romania are very well capitalised and have no cash fl
