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Romania, the Latest Country to Ask the IMF and EU for Emergency Loans |
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Thursday, 12 March 2009Having faced with economic stalemate in the country, Romania send a letter to the European Commission (EC) on Tuesday (10th March) in order to ask for launching the talks on possible IMF-led rescue package. According to the some calculations, the country needs approximately 20 billion euros for its external financing.
"We will establish the amount when we will see all conditions. If we are not satisfied, we may not take it," Romania's Finance minister Gheorghe Pogea said regarding a possible IMF loan.
The impact of the global economic crisis on Romania became more destructive especially in last months. As recently reported by Euractiv, the Romanian national currency, the leu, has lost 20% of value in the past year. The national currency, the leu, has stabilized in recent weeks. Besides, the economic growth has stalled and the repayment of euro-denominated loans has become more difficult for Romanians as their currency depreciates.
Talks with the EC and the IMF will determine the size of the loan. If Romania secures a bailout package, it would become the latest Eastern European country to gain external support after Hungary, Ukraine, Latvia, Serbia and Belarus.
Romania is known as the EU's second poorest member after the Hungary who also signed up for the similar sized amount of money in November.
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Thursday, 12 March 2009
by Asli Tuna, JTW.
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