Romania negotiates funding with both IMF and EU

“We are negotiating with the IMF, we have a direct connection, a dialog. Romania’s need for financing from the Fund has not so far been clearly established. I cannot say what figures we are talking about, because these could change. Calculations are ongoing,” central bank’s Chief Economist, Valentin Lazea, said.

He was questioned about information that a Romanian delegation is currently in Washington to negotiate a loan with the IMF, published by NewsIn agency.

Lazea declined to say whether the information, obtained by the news agency from financial market sources, is correct.

BNR “Deputy Governor Cristian Popa is in Washington today [Ed. n. Monday] to discuss the loan for Romania with the IMF. [Finance Ministry State Secretary] Bogdan Dragoi is also part of the delegation,” sources said.

Representatives of the IMF office in Bucharest declined to comment on the information, but indicated that “discretion is required on this issue.” BNR officials confirmed Popa’s visit to Washington, but declined to provide details on its purpose.

Liberal-Democratic First Vice President Theodor Stolojan confirmed that a Romanian delegation is currently in Washington to negotiate an IMF loan.

BNR Governor Mugur Isarescu said last week that Romania could contract several loans from the European Union (EU), the IMF, and other institutions, such as the World Bank or the European Bank for Reconstruction and Development (EBRD). These loans would be conditioned one on another and would be paid back within several years.

Lazea said that Romania’s way to counter the economic and financial crisis should focus on narrowing the foreign deficit. ‘For us, the crisis means a very wide and non-financeable foreign deficit,” he emphasized.

BNR’s Chief Economist added that, if the government fulfills its budget commitments, the crisis will not have a devastating effect from this point of view.

Regarding an IMF loan, Prime Minister Emil Boc declined to provide details. “When we have something official, you will be informed,” he said. “We are currently negotiating with the European Commission. These are the only official talks. As such, since the President was in Brussels yesterday [Ed. n. Sunday], we have discussions underway with our partners at the EC level on how to finance the deficit,” Boc added.