A Historic Reappointment: Mugur Isarescu Set to Extend His Tenure at the Head of the National Bank of Romania

In a bid to maintain stability in the Romanian economy, lawmakers are set to vote on the reappointment of Mugur Isarescu as governor of the National Bank of Romania. The 74-year-old has been in office for over three decades except for a brief stint as prime minister from 1999 to 2000. Sources close to the discussions revealed that he has the support of all major political parties in parliament, paving the way for him to continue leading the bank for another term.

Isarescu is no stranger to challenges, having dealt with high inflation rates and budget deficits during his tenure. He has cautioned against expecting swift interest rate cuts and urged policymakers to control spending to avoid further economic instability. Despite this, there have been calls for a rate cut, but policymakers held off on making any changes at their May meeting, keeping the benchmark interest rate at 7%.

As part of the parliamentary vote on Isarescu’s reappointment, Deputy Governor Leonardo Badea is expected to assume first deputy status from Florin Georgescu. Ionut Dumitru is also expected to join the team as a deputy governor, replacing Eugen Nicolaescu. Existing board members Cristian Popa and Csaba Balint are likely to have their mandates renewed. Additionally, presidential adviser Cosmin Marinescu may join the team.

The central bank declined to comment on these matters, but it’s clear that Isarescu remains an integral part of Romania’s financial landscape. The vote on Isarescu’s reappointment is expected by the end of June, with lawmakers aiming to hold it after local and European Parliament elections on June 9th.