THE "ROMANIA'S DEVELOPMENT IN THE NEW EUROPEAN FINANCIAL CONTEXT" CONFERENCE / DANIEL DĂIANU, BNR: "The world doesn't begin, nor end with the EU"

Romania's economic growth can be consolidated, in the current context, through methods such as using its internal efficiency reserves - the fight against corruption, for example -, by developing the domestic component of the banking system, by stimulating the rural loans, more efficient use of the European funds and investments in sectors such as exportable goods, says Mr. Daniel Dăianu, member of the Board of Directors of the National Bank of Romania (BNR).

He said that just as important are the development of the stock market, in order to attract stable capital, as well as the development of the business relations with the countries outside the EU, which have a solid economic evolution. "The world doesn't begin, nor end with the EU", Mr. Dăianu says.

When it comes to the development of the stock market, he said that we are only seeing state-owned companies getting listed, while the private sector "is moving slowly" in that regard.

The NBR official reminds of the fact that in Europe, the stock market only provides one third of the financing of the economy, unlike the US, where the ratio is 2/3.

Daniel Dăianu says that there can exist economic growth "without lending as well".

He said that in 2013, Romania's economic growth was 3.5%, despite a drop in bank lending. According to him, in December 2013, that lending volume was below that of December 2012.

"This evolution shows a disruption between bank lending and the dynamic of the economy", Daniel Dăianu further says.

The NBR official mentions that, from a medium and longer term perspective, we need adequate financing, either from banks, or from other sources, (stock market, direct foreign investments, European funds). "The European grants will matter enormously for the financing of the economy, if we reach net amounts (excluding the EU's contribution to the EU budget) of over 2.5-3% of the GDP", said Daniel Dăianu. According to him, the loan inventory in the Romanian economy may continue to decrease. Over the last few years, the banking sectors' exposure to the domestic economy has dropped by the equivalent of approximately 5 billion Euros, according to data presented on February 20th by the NBR official.

Mr. Dăianu considers that it is essential for the adjustment of the loan inventory towards a new level of "equilibrium" not to prevent the granting of new loans, especially in an economy where the stock market plays a minor role.