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Under the pressure of the crisis, the Executive and the National Bank have passed measures meant to encourage economic activity. Therefore, the National Bank of Romania has reduced the monetary policy interest rate from 9.5% to 9% and the institutions' rate of minimum compulsory reserves applicable to hard currency liabilities from 40% to 35%. These measures, which reflect the National Bank's concern with the degradation of the economic situation, are possible because it is efficiently controlling inflation, experts believe.

A programme under which the Romanian state is to guarantee loans for the purchase of a first house might be operational starting July. Like many other former communist countries, since 1989 Romania has been facing a constant housing shortage. And although the construction sector has grown substantially over the past few years, the country is still a long way from solving the problem.

Less than two months after the enactment of the state budget for 2009, it has already been subject to its first amendment as a result of the worsening of the economic situation leading to a drop in revenues. The amendment refers mainly to the elimination of salary inflation adjustment, a cut in the expenditure of a number of ministries and the introduction of fiscal measures like the controversial lump sum tax for small businesses.

After Romanian authorities reached an agreement with the International Monetary Fund and the European Commission, under which it will receive close to 14 billion Euros, the National Bank of Romania Tuesday decided to keep the monetary policy interest rate at 10 per cent, but changed the compulsory minimum reserves of commercial banks.

In 2008, the volume of foreign direct investments in Romania reached EURO 9024 million, registering a 24.4% increase as against the previous year (EURO 7.250 million). Considering the period 1990-2008, the volume of FDI attracted by Romania last year is very close to the peak reached in 2006, with only EURO 36 million less than record value of EURO 9060 million. Furthermore, in 2006, aside BCR privatization, foreign direct investments reached EURO 6900 million, thus it is justified to consider the year 2008 as an exceptional year in attracting FDI in Romanian economy.

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