UPDATE 1-Romanian PM to reappoint central bank governor in June: agency

Mon Jun 2, 2014 12:26pm EDT

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BUCHAREST, June 2 (Reuters) - Romania's ruling leftist coalition will endorse central bank governor Mugur Isarescu for a new mandate in June, Prime Minister Victor Ponta was quoted as saying on Monday by state news agency Agerpres.

The central bank is run by an administration board of nine members, appointed by parliament for renewable five-year terms.

"We will appoint the central bank's new board during the month of June, because their mandates expire in September, I think, but we can appoint them from June," Ponta told reporters, adding his party would back Isarescu for a new term, as he was "categorically" viable for the position.

It was unclear whether the rest of the board would change.

Isarescu, 64, was appointed governor of the central bank in 1990, only months after the collapse of the communist regime in late 1989. He has held the post ever since, with a brief stint as prime minister between 1999 and 2000.

The central bank made no immediate comment following Ponta's announcement.

Isarescu has actively pushed for market reform and introduced inflation targeting in 2005, efforts that helped Romania win entry to the EU in 2007.

Inflation stood at 1.2 percent on the year in April, well within the central bank's 1.5-3.5 percent target. The bank ended a rate-cutting cycle in March that has lowered borrowing costs by 175 basis points to a record low of 3.5 percent.

Isarescu has won praise from the International Monetary Fund for handling monetary policy cautiously at the height of Europe's financial crisis. The IMF is currently leading its third aid package for Romania since 2009. (Reporting by Luiza Ilie; editing by Matthias Williams and Tom Heneghan)

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