Gelin: Romanian banks do not need state aid

At this moment, Romanian banks do not need the kind of aid Western governments are proposing for the banking system, but rather economy stimulus moves, of which the most important is the start of major infrastructure works, states Patrick Gelin, BRD chairman. A lot of West European states have intervened on banking markets through capital injections operated in exchange of some heavy stakes, by completely guaranteeing banking deposits or inter-bank transactions. Last week, the representatives of several Austrian banks present in Romania stated Romanian authorities should copy the Western model of supporting players with systemic roles. However, bankers are aware that the state's involvement in shareholder structures comes with a series of restrictions, from bonus or dividend cutbacks, to policy adjustments. Gelin agrees a lot depends on the ability of state institutions to steer through this period, but does not see major interventions in the banking system as being necessary and states authorities' main concern should be setting a clear direction for economic policy. "The first challenge for 2009 is the lack of visibility as regards the evolution of the financial crisis, of the economic crisis, of its effects in Romania, over the programme Romanian authorities will implement in the following weeks," states the head of BRD, the second biggest bank on the market. On the other hand, Gelin maintains BRD foresaw the impact of the financial crisis and the economic slowdown as early as the beginning of this year.