Romanian legislation provides for significantly less independence than in

Bulgaria and many other Eastern European countries. Romanians modeled their

central bank law on the legislation that guided French central banking prior to

1993 reforms. The legislation is relatively vague. It provides for central bank

credit to the government to cover “temporary deficits” up to 10percent of the total

government budget or twice the sum of central reserves and capital, with no

maturity provisions. The central bank governor and board are chosen by

parliament and enjoy no protection from arbitrary dismissal.