Romania is in negotiations with the International Monetary Fund (IMF) in an attempt to solve liquidity problems, according to Reuters. The country’s dependence on external financing has been detrimental to it amidst the global credit crisis.
It was Bucharest that finally admitted to contacting the IMF. The message was proliferated across Romanian media on Monday as a delegation, including Cristian Popa, vice-governor of the Central Bank, and Bogdan Dragoi of the Ministry of Finance, flew to Washington over the weekend for talks.
If an agreement is to be reached, Romania, with a population estimated at 22 million, will be the third and largest country in the EU to ask for help from the IMF.
At the beginning of January ex-Minister of Finance, Sebastian Vladescu, considered that Romania would have to get at least 20 billion euro from the IMF to be able to cover its losses.
Bizarrely, the news originally came from German Foreign Minister, Frank-Walter Steinmeier, after a meeting in Berlin with his Romanian counterpart, Cristian Diaconescu.
Romanian government spokespeople refused to comment, maintaining a policy of silence that was in place for some weeks, according to Reuters.
Steinmeier said that Berlin wants to stay in close contact with Romania, one of the key markets for German exports in Eastern Europe. He said it was not yet agreed whether Brussels will provide financial aid.
Romania had already started negotiations with Brussels on obtaining aid. This could have become the rescue plan led by the IMF, similar to those requested by Hungary and Latvia last year when they were hit by the crisis.
Since the crisis picked up speed in October last year, Romania was downgraded from an EU country with the fastest economic growth to one of the most vulnerable, due to its large budget deficit.
Many economists, nevertheless, believe the country could pass through the crisis without international help to cover the cash deficit, estimated at several billion euro.
It was Bucharest that finally admitted to contacting the IMF. The message was proliferated across Romanian media on Monday as a delegation, including Cristian Popa, vice-governor of the Central Bank, and Bogdan Dragoi of the Ministry of Finance, flew to Washington over the weekend for talks.
If an agreement is to be reached, Romania, with a population estimated at 22 million, will be the third and largest country in the EU to ask for help from the IMF.
At the beginning of January ex-Minister of Finance, Sebastian Vladescu, considered that Romania would have to get at least 20 billion euro from the IMF to be able to cover its losses.
Bizarrely, the news originally came from German Foreign Minister, Frank-Walter Steinmeier, after a meeting in Berlin with his Romanian counterpart, Cristian Diaconescu.
Romanian government spokespeople refused to comment, maintaining a policy of silence that was in place for some weeks, according to Reuters.
Steinmeier said that Berlin wants to stay in close contact with Romania, one of the key markets for German exports in Eastern Europe. He said it was not yet agreed whether Brussels will provide financial aid.
Romania had already started negotiations with Brussels on obtaining aid. This could have become the rescue plan led by the IMF, similar to those requested by Hungary and Latvia last year when they were hit by the crisis.
Since the crisis picked up speed in October last year, Romania was downgraded from an EU country with the fastest economic growth to one of the most vulnerable, due to its large budget deficit.
Many economists, nevertheless, believe the country could pass through the crisis without international help to cover the cash deficit, estimated at several billion euro.
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