Saturday, February 28, 2009

Romania Needs EU10 Bln in Financing, Central Bank Adviser Says

By Adam Brown and Irina Savu

Feb. 27 (Bloomberg) -- Romania needs 10 billion euros ($13 billion) in external financing this year to cover its current account and budget gaps, central bank adviser Eugen Radulescu said.

Radulescu, an adviser to the governor, also said in an interview with the Money Channel in Bucharest that a 24.5 billion-euro aid package for eastern Europe announced today by various lenders would only cover part of the region’s needs.

“Romania needs 10 billion euros this year,” Radulescu said.

Eastern Europe’s governments are facing difficulties financing their budget and current-account deficits as investors shun riskier assets. Countries including Hungary, Ukraine and Latvia needed aid from the IMF and the EU to avert defaults.

Romania will decide next week on soliciting a package of loans from the International Monetary Fund, the European Union and other lenders to cover its shortfalls, Banca Nationala a Romaniei Governor Mugur Isarescu said in a news conference yesterday. He didn’t say how much the country would seek.

The World Bank, the European Bank for Reconstruction and Development and the European Investment Bank said earlier today in a joint statement that they will provide up to 24.5 billion euros to help central and east European banks and businesses cope with the global financial crisis.

“It’s obvious this package by the three institutions won’t represent all the funds,” Radulescu said.

To contact the reporter on this story: Adam Brown in Bucharest at abrown23@bloomberg.net

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