Radu Hanga, BVB: Financial stability is essential for Romania

Radu Hanga, the president of the Bucharest Stock Exchange, stated that predictability, stability, and balance are crucial for reducing the financing cost of the Romanian state, which is facing a public debt estimated at 220-230 billion euros and a budget deficit of about 8% of GDP. Hanga mentioned that the budget deficit amounts to approximately 30 billion euros, and to close it, either higher revenues or lower expenditures are needed. Additionally, defense spending is expected to increase from 2-3% of GDP to 5%, which further complicates the situation. He emphasized that, to maintain financial stability, it is essential for the Romanian state to be more predictable, which would lead to a lower financing cost. Hanga highlighted that, in the current context, it is important to find solutions to offset the increases in expenditures, mentioning that calm and balance are necessary to navigate this complicated period.