Romania, potential recipient of IMF emergency assistance?

Romania, Estonia Latvia and Bulgaria may solicit IMF financial aid, if they continue to use their foreign exchange reserves paying for imports, supporting currencies and rolling over debts, said Neil Shearing, emerging Europe economist at Capital Economics, International Herald Tribune informs.

What is the groundwork for speculations?

Emerging Europe economist at Capital Economics, Neil Shearing cites Turkey as a likely candidate for the financial aid.

Moreover, an article published by Times Online newswire show that Romania, Bulgaria and Baltic countries may call upon the International Monetary Fund to repair their balance sheets.

International Monetary Fund informed yesterday it is not in talks on any emergency financial aid for Romania, as a response to articles appeared in international press that included Romania in a group of countries likely to be recipients of a crucial loan from the institution.

“I was acquainted with the last week’s reference appeared in The Economist on certain countries, including Romania as possible recipients of IMF’s financial aid. We did not talk to Romania on any financial support of this nature, but we keep a permanent dialogue with Romanian authorities”, reads IMF press release, signed by representative of the institution for Romania and Bulgaria, Juan Fernandez-Ansola.

In first half this year, Romania’s economy rose 8.8%, gross domestic product climbing to 195.8 billion lei (53.3 billion euros).

Cristian Popa: Romania does not need a financial aid from IMF at this moment

Romania doesn’t need financial aid from International Monetary Fund, as the foreign exchange reserves cover 90% of the short, medium and long term debt of Romania, said NBR vice governor, Cristian Popa.
“At this point, Romania has no interest to call upon the emergency instruments offered for funding from IMF, however we are still talking with the institution for evaluations”, Popa added.

“Actual economic architecture sees IMF as a coordinator in providing assistance. It is not about long-term assistance, but emergency assistance,” he added.

The vice governor mentioned that IMF is making efforts together with emerging countries, as “the events that come tumbling rapidly upon us are not necessarily related to the economic grounds of a state’s economy”.

“It is true that other neighboring countries called upon IMF’s help, but for the moment, Romanian didn’t”, Popa added.

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