Emilian Radu, 56, the first Romanian partner of a Big Four consulting firm, currently strategic consultant with PricewaterhouseCoopers (PwC), says the state and banks have the power to solve problems in the economy, but that there is a crisis psychosis and that things are currently exacerbated.
"Because companies operate within a state-regulated macroeconomic system, the latter bears a significant responsibility to find solutions to get out of the crisis. That is why, under the current circumstances, we have to start from government policies," Radu told ZIARUL FINANCIAR in an interview.
He also says banks should become actively involved in finding a way out of the crisis. Banks, which are more educated than the other economic operators, responded in a completely unprofessional way when the crisis started, by raising interest rates and by alienating traditional clients - companies and the population. "Banks are morally responsible for the current crisis because they acted completely unprofessionally. They suffocated the economy, and now have to make the first move," Radu said.
Banks have, however, started to return to normal by turning towards their traditional clients again, he says. Under the circumstances, the volume of non-governmental lending (loans granted to the population and to companies) has remained steady at around 47 billion euros, after it had gone down by over 6 billion euros from October until June 2008.
The NBR (National Bank of Romania), on the other hand, responded prudently to the current crisis. "I argued that there was a need for a shock decrease, by 2-3%, of the monetary policy interest rate and for a more direct procedure when it comes to reducing the minimum mandatory reserves," said Radu, adding that on the plus side, the NBR has managed to maintain exchange rate stability. The central bank has cut its official exchan
