The decision of the Nastase Government to "shut down" Romania for one whole week, between Easter and May 1, has caused the profound dismay of the private sector representatives. Although the decision only refers to administration and the state-owned companies, the entire economy will be practically paralysed for nine days. What are the costs of this interruption? The state does not care, since its loss-making enterprises are better off shut down anyway.
"This is unacceptable. This will mess up people's plans, because the husband may be working for the state while the wife may be employed in the private system, so they cannot make plans together. One cannot paralyse the activity of a private institution. Moreover, what will people do with their Saturdays? They will not do much and, after one week of vacation, it is always tough to start again on Monday. In fact, several days will be blocked: three or four before and another three or four days afterwards," says Monica Tatoiu, general manager of one of Romania's largest cosmetics companies, Oriflame.
Banks could be badly hit by this situation, as they support the entire economic circuit and any non-working day quickly turns into losses (or rather non-cashed revenues). In fact, the bankers were the first to challenge a similar Government initiative last December, when the Executive wanted a full holiday for Christmas and New Year's.
"I don't know if it's all right to have so much spare time on our hands, because there's so much to do. The National Bank of Romania has not said anything about it so far, but I believe the financial-banking system will have to adjust to what will happen in the economic system. I would find it rather unnatural for the banks to be open for business while the companies aren't, and vice versa," says Radu Gratian Ghetea, chairman of the Romanian Banks Association and prime vice-president of Alpha Bank.
"The National Bank has not made a decision yet. The Government decision was rather sudden and the NBR will discuss it with the banks and the Treasury. And even if the banks will want to work, perhaps other institutions will not work during this interval - and by that I mean the Treasury," says Adrian Vasilescu, advisor to the National Bank of Romania Governor Mugur Isarescu.
The bankers are also against a potential generalisation of this Easter and Christmas holiday, which is currently considered by the Executive.
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