Romania’s National Bank governor Mugur Isarescu thinks that Romania is currently in the best macroeconomic shape he has seen in his career but also faces unprecedentedly high risks.

“In all my 26-year career, I haven’t seen Romania in a better macroeconomic shape than the current one. But I’ve never seen such high risks either,” Isarescu said in a conference about country risk organized by Coface and Ziarul Financiar on Tuesday.

“When one falls from the first floor it’s not such a big problem, but when one falls from a higher level, there may be a problem,” Isarescu added.

He also warned that the populist currents that have manifested lately in local politics may bring euphoria on the short term but can have high economic costs for the whole society on the long term.

He thus hinted to the recent laws adopted by the Parliament, which impact the loan contracts signed by Romanians with local banks.

Earlier on Tuesday, The Chamner of Deputies voted a law that converts Swiss franc denominated loans into local currency loans. This law is expected to have a high impact on local banks.

Romania's central bank sees no risk of economy overheating for now

Central bank Governor warns of severe systemic risk in Romania

editor@romania-insider.com