Romania Pays Interests Of 2%-3.4% A Year On Bailout Loans

Romanian Finance Ministry will pay an interest between 2.375% and 3.375% a year for the first three installments of a EUR5 billion loan from the European Union, according to the government’s public debt management strategy for 2011-2013.

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The document, obtained by MEDIAFAX, said the annual interests for the loans taken from the International Monetary Fund and the World Bank as part of a EUR20 billion financial package reach between 2% and 2.3%.

Romania has received so far EUR11.3 billion in IMF money, another EUR4.85 billion from the EU and EUR600 million from the World Bank.

"The multilateral financial package (…) has helped improve investor confidence, leading to a substantial reduction in CDS levels to around 290 basis points at the end of 2010, from 610 basis points early 2009," the document noted.

On Friday, the IMF approved a new EUR3.6 billion credit line for Romania, part of a EUR5 billion precautionary deal that includes funds from the European Commission.

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