Romanian May Take Up To EUR7 Billion Loan From EU, Under IMF Supervision

Romanian President Traian Basescu said Tuesday he announced the European Commission that Romania plans to take a EUR6-7 billion loan from the EU, under the supervision of the International Monetary Fund.

Basescu said in an interview with the public radio he does not agree with taking a loan from IMF, as Romania "can get cheaper EU money."

But "we need a surveillance agreement with the IMF," he said, adding that the EU does not have a monitoring system to watch over how the borrowed funds are used.

Romania's agreement with the IMF should not include any conditions, and the EU has to fulfill its obligations to the member states and grant loans not only to the euro-area countries, the president also said.

Basescu said the European Central Bank's interest rates are lower than the IMF's. However, he emphasized that his preference for EU funds, and not for IMF loans, is only a personal favorite, but the central bank and the Finance Ministry are in charge.

Basescu also said that Romania is not currently negotiating with the European Bank for Reconstruction and Development or the European Investment Bank.

Mediafax