29 Jan 09
Romania In Talks Over EU Rescue Loan
Romanian authorities have started talks with European Commision over a potential 6 billion euro rescue loan needed to buffer the country's economy from the threat of the world financial crisis, said officials close to the negotiations.
"A team of experts from the EU came to Bucharest early this week and they are here to discuss Romania's economic stability and the possibility for EC to offer financial help", said Nicolae Idu, chief of the EU Delegation in Bucharest.
"Discussions were also held with President Traian Basescu over a potential loan worth 6-7 billion Euros".
On Tuesday, Traian Basescu said in an interview he is not in favour of a new deal with the
IMF but could aim to strike a financing deal with the European Union.
Early this week, a team of experts from the International Monetary Fund started a 9-day regular visit to Romania to assess the country's macroeconomic developments and policy plans by the centre-left governing coalition. The IMF has said a rescue package is not on the agenda of its mission this
Many economists say Romania requires funding worth 5-9 billion euros as the Balkan country has to pay short-term debt and public spending. Its economy is expected to slow sharply to less than 2 percent from last year's growth rates of 8-9 percent.
(Reporting by Marian Chiriac)