President Basescu: Romania has other solutions apart from IMF

President Traian Basescu said on Friday (Jan 16) the last thing the Government will do will be to borrow from the International Monetary Fund (IMF).
"The last thing the Government will do will be to borrow from the Fund. I know this is a controversial matter, but we'll observe the practical areas. We might finance the current account deficit by a European loan, if we reach such a conclusion. A fund for the non-euro area countries has already been established.
We'll have to be very thrifty, because we have a problem: the Romanian economy can no longer be placed in the Fund's matrix. We have outstripped the edges of the matrix that the IMF imposes on an economy and not only on the economy, but on the society," Basescu told a conference on concrete priorities and measures to combat the crisis staged by the Alliance of the Romanian Employers' Confederations.
The president stressed he was convinced Romania has available other resources and solutions apart from the IMF.
"We can cooperate with the European Union, the World Bank, the European Investment Bank. And here is another piece of information you should have. We spoke about being made available a total 5.9 billion euros from the EU starting this year.
The ministries have contracted another three billion euros from the banks, and such amount is not being used. Financing contracts were signed, Parliament approved the funding, but such funding is of no interest, since the public money could be spent uncontrollably in 2008. There is still another three billion euros, therefore the economy is not unfounded, but our big problem is if we use this money", he stressed.
Basescu also sought to clear one more issue, the one of the matured bonds that the Government should finance.
"I want things to be very clear – I have spoken about three billion euros. Actually, the Government should secure nine billion (euros) from the market, since it must also finance the matured bonds. You very well know that in the last two years the
Treasury, the Government borrowed from the banks on the short- and medium-term and such bonds have matured, they must be re-financed. Therefore three billion euros in deficit plus another nine billion representing the due debts – this is the need for financing", Basescu explained.
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