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World’s Longest-Serving Central Bank Boss Is Extending His Stay

The governor of the National Bank of Romania is being handed a new five-year term after winning the support of the parliament.

World’s Longest-Serving Central Bank Boss Is Extending His Stay
A Romanian national flag hangs outside the entrance to the country’s finance ministry in Bucharest, Romania. (Photographer: Akos Stiller/Bloomberg)

(Bloomberg) -- The world’s longest-serving central bank governor is set to extend his stay beyond three decades.

Mugur Isarescu, who leads the National Bank of Romania, is being handed a new five-year term after winning the support of the Black Sea nation’s parliament on Wednesday.

In his job since 1990, the 69-year-old has lived through everything from hyperinflation and his country being on the brink of bankruptcy to the global financial crisis of 2008.

“The future board faces major challenges because of rising imbalances in the economy,” Isarescu said Tuesday during parliament hearings. “Efficient cooperation with the government is needed.”

World’s Longest-Serving Central Bank Boss Is Extending His Stay

His reappointment had been in question.

He’d been coy on seeking a new mandate, hinting he’s too old to continue. Additionally, there was speculation that Romania’s fragile budget would prompt the government to seek greater sway over the central bank as an alternative means of juicing economic growth and boosting flagging popularity before elections.

The imprisonment of former ruling-party boss Liviu Dragnea in May for corruption has eased those concerns. Prime Minister Viorica Dancila has struck a conciliatory tone after taking the lead of the Social Democrats, seeking also to soothe tensions with the European Union.

Isarescu will get a new five-year stint, starting in October, after winning cross-party backing. The rest of the nine-person board, including newcomers, is as follows:

  • Florin Georgescu, first deputy governor
  • Leonardo Badea, deputy governor
  • Eugen Nicolaescu, deputy governor
  • Five non-executive board members, including Csaba Balint and Cristian Popa

The bank faces challenges. Economic expansion is set to slow, inflation is the EU’s fastest and the budget deficit is forecast to blast through the bloc’s limits. Presidential and parliamentary elections in the next two years add further uncertainty.

Isarescu this week reiterated Romania’s plan to join the euro area in the coming years and hopefully during the mandate of the current board, assuming the economy is fully prepared.

To contact the reporters on this story: Irina Vilcu in Bucharest at isavu@bloomberg.net;Andra Timu in Bucharest at atimu@bloomberg.net

To contact the editors responsible for this story: Balazs Penz at bpenz@bloomberg.net, Andrew Langley, Andrea Dudik

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