How Much Money May Foreign Banks Send Back Home?

Central Bank Governor Mugur Isarescu, leaders of several commercial banks and the minister of finance Sebastian Valdescu met Monday evening to address the optimum level of exposure subsidiaries of foreign banks should have in Romania. That on account of the fact that mother-companies want some of their money sent back home.

The official line is that these subsidiaries already have too much liquid assets in Euros, that they have a hard time investing in the Romanian economy, which is shrinking or stagnating at best.
Isarescu said there were no negative undertones to this request, and there should be no emotion over the fact that foreign banks are siphoning their money out of Romania.

Currently, the Romanian Government finances some 20% to 30% of its debt with loans from banks operating in the country.

Sources present at the Monday meeting said another topic was the meeting scheduled to take place in Brussels on Thursday, between the first nine foreign banks operating in Romania, the IMF, the Romanian Central Bank and the European Commission. Still another topic was the one regarding the stress-tests 91 credit institutions in Europe were subjected to.

"There was no decision made. These were only exploratory talks. Some regarded the recent macroeconomic developments," the source said.
Translated by AAP