Danila: Romania will avoid recession, but it will have to rightsize the CA deficit

“We will have to focus on internal financial resources in the coming period, given the fact that external resources will not come back to their previous level. The internal resources are narrow, whereas there are countries that covered the full amount in the deposit insurance scheme. Resources of the adjacent countries focused on this matter. We will have to take a prompt measure, otherwise, the resources will vanish in Romania”, said Nicolae Danila, vice president of Scientists Academy in Romania, NewsIn informs.

He added that Romanian banks had drawn resources from the local market , but the euro-currency liquidities were held by the parent banks, abroad.

Danila stressed that Romania would avoid recession, but legislators will have to rightsize the current account deficit, as the 14%-of-GDP threshold is acceptable now, “but it will become a major problem if it will not be revised downwards”.