national bank of romania, as they capture appropriately the opinions of the real sector on some key issues, such as : ( i ) the most pressing problems that firms are facing in their activity ; ( ii ) the investment needs and priorities ; ( iii ) challenges raised by climate change and energy efficiency. the survey shows that firms in romania have become less optimistic regarding investment conditions for the year ahead. while this is a worrying trend, we are rather positive that romania will be able to overcome the main problem identified, the energy costs, in the near future. i would add here that the government has implemented several measures in this respect, such as electricity and natural gas price capping schemes, the compensation of the price of motor fuel / liter and caps on the firewood price. also, we are aware that the war in ukraine and the related sanctions will continue to generate considerable uncertainties and risks to the outlook for economic activity, through possibly stronger effects on consumer purchasing power and confidence, as well as on firms'activity, profits and investment plans, with an unfavorable impact on financing costs. in this current juncture, the balanced macroeconomic policy mix and the implementation of structural reforms, including the use of eu funds to foster the growth potential over the long term, are essential in preserving a stable macroeconomic framework and strengthening the capacity of the romanian economy to withstand adverse developments. with respect to the national bank of romania's responsibilities, we aim to anchor inflation expectations over the medium term, to bring the annual inflation rate back towards the target, in a manner conducive to achieving sustainable economic growth. the annual cpi inflation rate is projected to follow a gradual downward path, but to remain slightly above the variation band of the target also next year. the prudential and financial position of the romanian banking sector - the main source of finance to the economy - is adequate. however, the risks are rising both locally and internationally. the total capital ratio remained adequate, above the eu average, but the capital reserve shrank once with the marking to market, because of the fast - paced interest rate rise. asset quality continued to improve, with the non - performing loan ratio falling to european levels and the npl coverage by provisions staying at significantly higher levels than the european average ; profitability increased. yet, romania's banking sector faces a number of vulnerabilities : ( i ) expectations on a higher risk of default on private sector loans amid worsening macroeconomic conditions, the uncertainty

mugur isarescu : policy support and the emerging “ new normal ” how well - positioned are romanian firms? opening speech by mr mugur isarescu, governor of the national bank of romania, at the european investment bank ( eib ) webinar “ investment and investment finance in romania ”, 23 february 2022. * * * vice president thomsen, distinguished audience, ladies and gentlemen, welcome to this year ’ s webinar organized by the european investment bank in partnership with the national bank of romania, titled „ policy support and the emerging “ new normal ” : how well - positioned are romanian firms? ”. i am delighted that so many of you could join us virtually this morning. today, as we are shifting to a new phase of the global pandemic ( and hopefully the last one ), we will discuss the latest developments in investment and investment finance in romania. we will try to provide an overview of what is needed in order to use the economic recovery as a springboard for change and transition to a more digital and greener economy. please allow me to extend a warm welcome to vice - president christian kettel thomsen and his colleagues from the european investment bank, including chief economist debora revoltella and ms. lara tasan zanin, the head of the eib office in bucharest. i would also like to express our appreciation for the eib ’ s continuous involvement and support in engaging with stakeholders in romania through this valuable series of events. romania and the european investment bank share a long and fruitful partnership that has favored investments in important sectors of our economy. i consider there is large space for this partnership to expand, also based on new challenges from the european agenda. as always, this event centers around the eib ’ s investment survey, an excellent country analysis conducted by eib experts. the conclusions of this survey represent a welcome addition to those of our central bank ’ s own survey on the access to finance of non - financial corporations in romania. our survey captures the opinions of the real sector on : ( i ) the most pressing problems that firms are facing in their activity ; ( ii ) the perception on the financing cost ; ( iii ) the perception on the implications of a possible appreciation / depreciation of the local currency ; ( iv ) the perception on the impact of climate change. coming back to the eib, its investment report analyzes the state of investments in the eu in the pandemic, climate change