Romania's Finance Ministry estimates 750m lei losses from state guarantees and subloans by 2010

Romania's Economy and Finance Ministry (MEF) estimated an average annual loss of 251.5 million lei for the period 2008 - 2010, caused by payments made from the contingency fund to the beneficiaries of state guarantees and subloans, a ministry report reads.

The ministry will grant state guarantees and subloans with "more caution" from now on, because payments from the contingency fund can widen the budget deficit, according to the report.

The guarantees and subloans will be granted only for high priority or strategic projects, after verifying the credit worthiness of the beneficiaries.

The state guaranteed debt totaled 1.88 billion euros after six months, 194 million euros lower than at the end of last year. The public sector accounted for 1.806 billion euros of the total debt, while the private sector accounted for just 74 million euros.

NewsIn