Romanian Executive together with other governments in Central and South-Eastern Europe should follow the Austrian example and to draw a rescue plan to stabilize the financial sector, said Herbert Stepic (photo), Raiffeisen International’s CEO that holds the fourth biggest bank in Romania.
Stepic proposed a set of measures to include a capital injection in the Romanian financial system, to help banks continue their activity, especially lending in the real economy.
“Soon after the Government configuration is established, Romanian politicians will have to take a set of measures to supply the liquidity pools in financial market and to provide confidence in financial institutions. I believe a governmental plan of 10 billion euros aid for banks in Romania is more than enough”, said Herbert Stepic.
He added that politicians in Romania, together with the central bank must take the same measures to stimulate the economy, following the example of the developed countries.
According to Stepic, if the funds could not be extracted from the currency reserves, European Union would help the newly-accessed member by any means possible, but it would need all the support from the new government.
What do insiders think about the rescue plan?
Bankers polled by Wall-Street think there are required certain measures to support the national economy, however, they said, the banking system is solid enough and the 10 billion euros rescue plan of the Romanian government will be necessary to support lenders in the event of poorer macroeconomic conditions.
“The banking sector is stable, trusted and doesn't need rescue, if the real economy will not substantially deteriorate, meaning huge unemployment and corporate failures”, Laszlo Diosi, OTP Bank Romania’s CEO told Wall-Street.
He added that all bankers would welcome a lower mandatory reserve rate,