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President Iohannis warns against growing macro-economic imbalances, loans over long-term to fund current expenses

President Klaus Iohannis has said on Friday, in a message to the Body of Chartered Accountants and Authorized Accountants in Romania (CECCAR), that the ‘allocation of resources to the detriment of investments is not a sustainable way of economic development.’ He has warned about the deepening of macro-economic imbalances, ziare.com reports.

“The post-crisis period was one of challenges for our economy. Currently, Romania has one of the highest economic growth rates in Europe. Nevertheless, one can notice also the deepening of imbalances in terms of macro-economic stability. Your expectations, the companies’ expectations to carry out the operations in a predictable and sustainable environment are fully legitimate. This is why you should not neglect your part, as professionals, to identify and communicate solutions that would lead to such a climate,” President Iohannis said in a message at the beginning of the congress, a Presidency release informs.

The head of state said it is unhealthy for the national economy to take long-term loans to cover the current expenses.

“You know very well that it is unhealthy for a company to take long-term loans to finance current expenses. This reasoning could be extended at the level of national economy. The allocation of resources to the detriment of investments is not a sustainable path to development. Sooner or later, these approaches will limit the growth opportunities,” President Iohannis said.

He added that Romania can consolidate economic achievements only by ‘close cooperation’ with the economic environment, in the field of liberal professions and on the productive one.

About Victor Lupu