Geoana: 13 bln euros earmarked for stabilizing currency rates and 5 bln to cover deficit

PSD president, Mircea Geoana said the rescue package from IMF is likely to stand at 13 bln euros, and will be earmarked to stabilize the currency rates while the roughly 5bln euro loan from EU would cover the budget deficit and investments.

“BNR is likely to attract nearly 13-bln euros, of which 11 bln euros will benefit of withdrawal rights. This amount is not automatically wired or borrowed; it will be used as much as it is necessary. The money will be withdrawn at the pace and needs indicated by the monetary market’s realities. In order to cover the budget deficit, we are considering some 4-5 bln euros earmarked for budget spending”, said the leader of PSD.

Geoana stated there were still the funds from WB, EIB, and EBRD amounting to 2 bln euros, added to the money earmarked to stimulate investments. Chairman of the Senate stressed that the budget deficit was likely to hit 4% threshold. “The budget deficit will need to be readjusted. A 4% red ink will have to be a form of guarantee that the resources for pensions and salaries will remain unaffected as well as sources of public investments”, he added.

Mircea Geoana said Romania was trying to clinch the loan at an interest similar to neighboring countries. “We obviously request a loan at an interest almost similar to other countries – such as Hungary – thus we are considering a nearly 3% cost which is good compared to existing loan costs in the market".

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