Romanian president opposes asking for IMF help

Romanian president
opposes asking for IMF help

By Justyna Pawlak
Forbes
01.27.09

BUCHAREST, Jan 27 (Reuters) - Romanian President Traian Basescu has spoken out against a potential deal with the International Monetary Fund, defying expectations from many economists that Bucharest may be forced to seek IMF help.

Bucharest's month-old coalition government appears conflicted about seeking the fund's help to shore up jittery markets and insulate the economy from the threat of a financing crisis, in deals similar to those sought in 2008 by Hungary and Ukraine.

Basescu's comments, made in a late-night television show on Monday, come as the Washington-based lender began a scheduled mission to Bucharest. The fund has said talks about any assistance programme are not on the agenda for the visit.

A senior coalition strategist, Ionut Popescu, said in December at least 10 billion euros in IMF cash may be necessary, while Prime Minister Emil Boc has said a decision whether to seek help had not yet been taken, saying the country had 'many solutions' to its current situation.

But Basescu, who has close political ties with Boc's month-old cabinet, said Romania should not seek an IMF deal.

'Romania needs financing ... but the solution is to take money from the EU, not from the Fund .. We are not in the same situation as Hungary,' he said.

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