Romanian ruling party senators object to new term for central bank governor

The spokesman of Romania’s senior ruling party PSD, Mihai Fifor, on June 25 announced that the party’s senators have decided not to support the central bank’s governor Mugur Isarescu for a new term, local Adevarul reported. This announcement came one day after the ruling coalition’s parties seemed to have agreed on renewing Isarescu’s term, a decision supported by the main opposition party, the National Liberal Party (PNL), as well.

The new leadership of Romania’s National Bank (BNR) is to be voted by the Parliament on July 3.

BNR constantly pointed to the Government’s fiscal policies for the inflationary pressures and exchange rate pressures last year, but its comments recently turned more general. Conversely, the Government showed the central bank as responsible for the inflation and rising interest rates. The tax on bank assets adopted at the end of last year prompted another conflict between the Government and central bank, but the Government sweetened the provisions and removed the tensions.

The parties represented in the Parliament have discussed only the distribution of the BNR board members so far, Fifor said. He added that the candidates would probably be known this week.

(Photo source: Bnr.ro)