Romanian Govt Officially Asks EC For Financial Package

The value of the financial package will be established based on the talks with EC officials and the representatives of the International Monetary Fund, or IMF.

IMF said Monday in a statement that it will visit Romania during March 11-25 to hold discussions on a potential agreement, part of a multilateral financing package to be supported by the European Union and the World Bank, among other international financial institutions.

A Romanian delegation including central bank deputy governor Cristian Popa and Finance Ministry secretary of state Bogdan Dragoi carried at Washington discussions with the IMF on a potential agreement. Popa and Dragoi were also in Brussels to talk to the European Commission representatives about an eventual loan.

Romanian Finance Ministry announced Tuesday that, jointly with the central bank, started preliminary talks with EC, IMF and international financial institutions representatives, on assessing the macroeconomic environment and the necessary foreign financing for Romania.

The Finance Ministry said Romanian authorities plan to access medium-term external financing, a decision already notified to the European Commission.

Financial Times reported Tuesday Romania could receive about EUR20 billion in an International Monetary Fund-led rescue package as the result of negotiations between Bucharest authorities and the IMF.

EU Monetary Affairs Commissioner Joaquin Almunia said Monday that EU is ready to negotiate with Romania for granting a financial aid to support its economy against the impact of the global financial crisis.

According to Almunia, the aid would come from a special EU fund for its members outside the euro zone with balance-of-payment problems that was already tapped by Hungary and Latvia.