Romania's central bank governor: euro adoption only after fiscal consolidation

The National Bank of Romania (BNR) does not consider that the objective of joining the single currency system is not feasible before fiscal consolidation, BNR governor Mugur Isarescu said on October 1 while speaking in front of lawmakers at the hearings for a new term at top of the central bank.

Increasing taxation is not feasible ahead of the elections but will be a necessary ingredient of the fiscal consolidation, Isarescu stated. Separately, the FDI companies borrowing from Romania (instead of borrowing indirectly from abroad through parent groups) would diminish the external debt (with a positive impact on the external balance), he added.