Van Groningen, Raiffeisen Bank: It would be best if the leu stayed around current levels

It would be best that the leu stayed around current levels as it would cushion the borrowers in euro, said the CEO of Raiffeisen Bank, Steven van Groningen, highlighting the importance of a stable currency for the economy

“It would be best if the leu remained at today’s rates, but when times are governed by uncertainty, it is important not to see any wide-band movements of the currency rates, as this is an element of stability”, said van Groningen.

CEO of Raiffeisen Bank said that in case of a sharp devaluation of the leu, the effect would spread to borrowers in euro.

"Nevertheless, the evolution of the local currency is linked to the market sentiment”, van Groningen added.

The leu fell dramatically at the end of last year and in January this year, when leu peg versus euro hit all-time highs, of 4.3127, and recovered after the IMF rescue package arrangement became public.

The CEO of the bank said Raiffeisen Bank Romania was in talks with various international financial institutions, including European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB) for financial aids to lend small businesses (SME).

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