The figures were provided to the daily Cotidianul newspaper by sources close to the talks. Meanwhile, sources within the Social Democratic Party (PSD), part of the ruling coalition, said that Romania’s representative to the IMF, Mihai Tanasescu, told PSD that the country would not be able to maintain a deficit below the 3 percent threshold required by the European Union.
Romania could borrow some €13 billion from the IMF, of a possible total €18 billion loan, with the remainder coming from the European Commission, the World Bank, or other financial institutions, sources close to the negotiations said. Romania could sign a two-year agreement with the IMF for a foreign loan it needs to cope with the economic crisis, which has shrunk state budget revenues. Two thirds will go to the National Bank of Romania and the remainder to the Finance Ministry.

„We are to sign this agreement to avoid negative consequences of the crisis on Romania’s economy,“ Prime Minister Emil Boc said.
The IMF estimates, on which negotiations for a foreign loan will be based, come after one week of talks with Bucharest officials, including President Traian Basescu, Prime Minister Boc, Finance Minister Gheorghe Pogea, and Economy Minister Adriean Videanu. The report shows that Romania’s economic evolution is much grimmer compared to previous financial estimates made so far by financial institutions or banks.
Pogea admitted yesterday that, in the analyses carried out with the IMF, scenarios based on an economic decline exceeding 1 percent were considered. The President of the National Prognosis Commission (CNP), Ion Ghizdeanu, also said that the economy is likely to shrink 2–3 percent in the first quarter. However, he did not provide an estimate for the entire year.
Negative economic growth of –3 percent has not been registered since Q11999. However, the results in other quarters were not that bad – declines of 1.3, 0.7, and 0.3 percent.

Since 2008, the country’s economic growth was positive. The advance was spectacular last year, with a 9.2 percent peak in the third quarter, but the final three months brought a significant slowdown, of only 2.9 percent growth, as the impact of the global crisis was sharply felt in Romania by year-end.

Meanwhile, Prime Minister Boc said that Romania will not be forced to increase its flat tax and the value added tax (VAT) following a financing agreement with the IMF and the European Commission. A VAT hike would affect people with low income, while a rise in the flat tax would have a negative impact on the business environment, he added.

’We are to sign this agreement to avoid negative consequences of the crisis on Romania’s economy' Emil Boc Prime Minister