Romania to get 20 billion euros in rescue loans

(25 Mar 2009) SHOTLIST
24 March 2009
1. Exterior of presidential palace
2. Romanian President Traian Basescu shaking hands with officials from International Monetary Fund, European Union officials and World Bank representatives
3. Jeffrey Franks, the head of the IMF mission
4. Various of meeting between IMF mission, European Union officials and World Bank representatives and Basescu and his officials
25 March 2009
5. IMF bureau entrance in Bucharest
6. Set up of news conference
7. Cutaway cameras
8. SOUNDBITE (English) Jeffrey Franks, head of the IMF mission:
“This support package would represent additional resources for Romania of about 20 (b) billion Euros. I should emphasis that this is an agreement what we call a staff level agreement.”
9. Close of reporter taking notes
10. SOUNDBITE (English) Jeffrey Franks, head of the IMF mission:
“You are fortunate in Romania, that you have now a banking sector that is relatively healthy and well capitalised. This is very key advantage that Romania has entering in this economic problem. However, it will be extremely important that measures are undertaken now, to assure that the banking system remains well capitalised and solid.”
24 March 2009
11. Bus stop with bank advertising
12. Stray dogs crossing street in front of bank
13. Family walking in street, zoom in to bank
14. SOUNDBITE (Romanian) Tamara Stroe, Local resident:
“I understood that it will be even worse so I am very worried for the future of my family.”
15. Various of banks
16. Main entrance of Romanian Financial newspaper ‘Financiarul’
17. SOUNDBITE (English) Radu Tudor, Political analyst and newspaper editor of ‘Financiarul’:
“We now are feeling the turbulence of the economical crisis. A crash maybe will happen in the next six months, and we need this money to be sure that Romania will not crash after the first wave of the economic crisis that is coming from Western Europe to Eastern Europe.”
18. Pan exterior of banks
19. Cash machine delivering money
Crisis-hit Romania is to receive 20 (b) billion euros (26.9 (b) billion US dollars) in loans from a group of lenders led by the International Monetary Fund, officials said on Wednesday.
The money will bolster government finances hard hit by the world financial crisis.
Jeffrey Franks, the head of the IMF mission to Romania, told reporters that the organisation had agreed to a two-year bailout loan of 12.95 (b) billion euros (17.49 (b) billion US dollars).
The first part, five (b) billion euros (6.7 (b) billion US dollars), would be available in the summer.
Franks said another five (b) billion euros (6.7 (b) billion US dollars), would come from the European Union, 1.5 (b) billion euros (2.01 billion US dollars) from the World Bank and the rest from the European Bank for Reconstruction and Development.
Romanian President Traian Basescu met officials from the IMF, EU and World Bank on Tuesday in advance of the announcement.
Romania is the third EU member to receive an IMF-led bailout loan after Hungary and Latvia, countries that all have been hit hard by the economic crisis in recent months.
Eastern Europe has struggled with falling growth, sagging currencies and political turmoil from the crisis.
Romanian Prime Minister Emil Boc was expected to meet ministers later on Wednesday and approve the loan request.
Franks said that as a condition of the loan, Boc’s centre-left government would take measures to gradually reduce the budget deficit.
The European Commission said in a statement that a “key element” of the economic policy package was an immediate and sustained fiscal consolidation to limit the budget deficit to 5.1 percent of gross domestic product this year and to below three percent of the GDP in 2011.

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