Bucharest-based RONCO currency exchange is the largest market for euros in Europe.
It has a volume of over 10 million euros a day.
The company that is the main provider of euro-denominated payments to local authorities in Romania has said the current market conditions in Romania are not sustainable.”RONCO has been struggling for the past six years, and it is not only because of the severe and acute monetary crisis, but also because of a lack of liquidity,” the company said in a statement.
“We have been selling euros at a very high discount, and we have not been able to generate sufficient cashflow.”
According to RONco, the market is still in a state of “extreme volatility” as some customers are unable to obtain cash.
The company also said the demand for euros has been increasing in the first quarter of this year, which means that the market for euro-based payments will remain unstable until at least March 2018.
The company said it has already increased its cash-flow, but the increase will be needed to meet the demand.RONco said it is still evaluating the next steps in the restructuring process.
The Romanian government has announced it will be cutting the government salary by 5% in 2018 and 2019.
The cuts will affect about 5,000 public sector employees.
The move was taken as a response to the government’s efforts to reduce the deficit.
The government plans to cut the budget deficit by 9.6% of GDP next year, and by 2.2% in 2020.
The cuts come as the economy is also struggling with a severe inflation problem, which is also affecting the government salaries.