NBR measures in the context of the COVID-19 epidemic
The National Bank of Romania (NBR) adopted the following measures:
• monetary policy measures: (1) to cut the monetary policy rate by 0.50 percentage points, from 2.5 percent to 2.0 percent; (2) to narrow the symmetrical corridor defined by interest rates on standing facilities around the monetary policy rate to ±0.5 percentage points from ±1.0 percentage points; (3) to provide liquidity to credit institutions; (4) to purchase leu-denominated government securities on the secondary market to ensure the smooth financing of real economy and the public sector.
• measures to increase the flexibility of the legislative framework so that banks and NBFIs could help individuals and companies with outstanding loans.
• measures regarding the bank resolution: to postpone the deadline for collecting the annual contributions to the bank resolution fund for 2020 by 3 months, with the possibility of extension to up to 6 months; to delay the reporting deadlines of some information on resolution planning.
• operational measures: to ensure the smooth functioning of payment and settlement systems underlying payments in the domestic currency.
Specific issues addressed and anticipated impact
The mitigation of the negative effects generated by the coronavirus (COVID-19) epidemic on households and Romanian companies.
National Bank of Romania