Higher percentages than in Romania are seen in Lithuania - 21% and Hungary - 17.24%. And the example of the Hungarian state is the best, because it increased the VAT up to 27% - the highest level in the European Union. But Romania is not far from that after it jumped from 19% to 24% VAT. Then the reason the cash increased in Romania is the extension of the underground economy, which caused the money to leave the banks. Meaning a blackening of the economy after the VAT increase, a response to poor government management, which burdened the economy in times of crisis.
Massive amounts of money leaving the banks means that the cash volume circulating in the economy is increasing being unregistered and bypassing the state budget and the banks. Experts say that a solution to "whiten" the money and diminish the cash would be to grant more tax deductibility options.