The ruling coalition in Romania postponed the election of the new board of directors at the central bank (BNR) until September, according to sources familiar with the process quoted by Ziarul Financiar. But a new term for BNR governor Mugur Isarescu is highly likely.

The two parties reportedly waited until after the European electrons, then they feared a lack of quorum.

Usually, the BNR board was elected in May-June at the end of the parliamentary session, with the official mandate coming into force on October 1, the daily commented.

Prime minister and president of the senior ruling company Marcel Ciolacu implied that incumbent BNR governor Mugur Isărescu would receive a new mandate. The government praised the disinflation path, for which it also claims merit, despite the prices’ dynamics remaining the highest in Europe by far, while the central bank has not increased its moderate criticism regarding the “inflationary impact” of the fiscal policies (major fiscal slippage risks).

Vice-governor Leonardo Badea, backed by the Social Democrats, is also close to a new mandate. Cosmin Marinescu, the presidential advisor on economic issues to president Klaus Iohannis since 2015, may replace Eugen Nicolaescu (backed by the Liberal Party) as one of the vice-governors.

iulian@romania-insider.com

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