Mugur Isărescu (74), the world’s longest-serving central bank governor, is poised to be confirmed for a new five-year term as lawmakers seek a vote on the extension by the end of June, according to Bloomberg.

Appointed shortly after the fall of communism in 1990 and remaining in office for three decades (except for a one-year period as prime minister in 1999-2000), Romania’s central bank governor has avoided major conflicts with the executive even if it has openly criticised the fiscal policy for its inflationary impact. At the same time, no executive has pointed to the monetary authority for the endemic inflation in Romania, rampant in the 1990s and still the highest in the European Union nowadays.

Isărescu has the support of the largest parties in parliament to remain in office for another term, according to people familiar with the negotiations consulted by Bloomberg. The sources said the vote would take place after the local and European Parliament elections on June 9. 

Mugur Isărescu did not confirm his candidacy.

As part of the parliamentary vote, deputy governor Leonardo Badea is likely to take over the role of first deputy governor from Florin Georgescu, who will remain on the board, according to people familiar with the matter. Ionuţ Dumitru, former chief economist of Raiffeisen Bank and former head of the fiscal council, has the support for the position of vice governor, replacing Eugen Nicolaescu, they said.

Some of the current members of the board of directors, such as Cristian Popa and Csaba Balint, will probably also have their mandates renewed, while presidential adviser Cosmin Marinescu could join the team, the respective people said.

iulian@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)