BNR's Isarescu: We do not want to choke the lending's growth, we want to keep it within safe limits

The National Bank of Romania does not wish to "choke" the lending's growth, nor the economic growth, declared on Wednesday the governor of the National Bank of Romania (BNR), Mugur Isarescu, when asked about the measure of limiting the population's indebtedness. 

"I talked it over with the banks as well. We are looking at the data. Under no circumstances do we want to choke the growth of the lending nor the economic growth. Under no circumstances. We are looking at other countries' experience," Isarescu answered. 

The BNR governor explained that the central bank does not wish for anyone to become "a slave" to the bank, through loans that cannot be returned. He added that everyone's wish to have a house is a natural thing, but it cannot be compared to "wanting a piece of chocolate". 

"We want to keep it (the lending, ed. n.) in prudent limits and that is our job," the BNR governor said. 

Mugur Isarescu added that the discussions with the banks have commenced and that he "is talking with the Government and the opposition" concerning some precautionary measures the BNR wishes to make public in September. 

The BNR governor also said that the mandatory minimum reserves need to be reduced from 8 percent to 2 percent, if Romania is to join the Eurozone, this being the money for lending. Isarescu added that issuing this money now would make it reach the foreign exchange market and would belittle the exchange rate.