Romania Gets 20 Billion-Euro Bailout Aid From IMF, EU - by Adam Brown and Irina Savu
Romania got a 20 billion-euro ($27 billion) loan from the International Monetary Fund, European Union and other lenders, the sixth eastern European nation to be bailed out as the region’s economies struggle to stay afloat. About 13 billion euros will come from the IMF and the rest from the EU, World Bank and the European Bank for Reconstruction and Development, the Washington-based fund said in a statement.
The “package should more than cover Romania’s financing needs this year,” said Ozgur Yasar Guyuldar, an emerging markets strategist in Vienna at Raiffeisen Centrobank, in an e- mail today. “The IMF deal will certainly bring some discipline to the budget. I view this aid package as a big relief.” The loan brings to more than $60 billion the total handed out to eastern Europe. Hungary, Ukraine, Belarus, Latvia and Serbia have also sought bailouts to prevent defaults and aid banks.
Note EU-Digest: The next step is to closely monitor that these funds get properly allocated and not squandered away by corruption which has been a constant problem in Romania.
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