April 24 (SeeNews) - Romania's lower chamber of parliament on Wednesday passed a bill that would require the central bank to repatriate its gold reserves held abroad.
The bill was backed by 165 MPs, data posted on the lower chamber website showed. 90 MPs voted against, while three abstained.
MPs of the Democratic Alliance of Hungarians in Romania (UDMR), who usually support the legislative initiatives of the ruling Social Democrat Party (PSD), said they voted against as the bill has not received the central bank's approval.
The Romanian central bank has warned that the European Central Bank (ECB) should give the green light to the plan before it moves ahead.
PSD leader Liviu Dragnea and senator Serban Nicolae drafted the bill in February.
"The National Bank of Romania can deposit gold from the established reserve abroad exclusively for the purpose of obtaining income through trading and other specific operations. The gold deposited by the National Bank of Romania abroad can not exceed 5% of the total gold reserve," the bill reads.
According to the explanatory statement accompanying the draft law, nothing in Romania's current economic situation justifies keeping such amount of gold as a reserve abroad, with all related high costs, provided that this reserve can be properly maintained and supplemented in domestic deposits.
The gold reserves of the central bank remained unchanged at 103.7 tonnes and were worth 3.835 billion euro ($4.299) at current international prices at the end of March, according to the latest data available.
According to local media reports, some 61 tonnes of BNR's gold reserves are being held at the Bank of England.
($=0.8919 euro)