Mugur Isărescu says BNR’s no.1 priority in 2009 is the foreign deficit

Mugur Isărescu says BNR’s no.1 priority in 2009 is the foreign deficit

Romanian central bank governor Mugur Isarescu said, on Wednesday, the priority of the National Bank of Romania this year is to adjust the Romanian foreign deficit.

We had an excessive economical growth in certain sectors. The consumption rate and the foreign currency credit went up, which generated a false economical growth. Budgetary spending led to the increase of the external deficiency” explained Isărescu.

He said he personally disagrees with an increase in any of the major taxes, and even with talks on this issue, which confuses people and the market even more.

"In such moments, even discussing such an idea seems inappropriate. We only manage to bring more confusion to a discouraged society and economy. Under the current circumstances, no major tax hike is justified," said Isărescu.

The Romanian governor explained how a higher tax would not trigger higher revenues, but has a negative impact on the tax collections.