Romania To Sign New Deal With IMF In 2011 - President

Romania will sign a new loan agreement with the International Monetary Fund in 2011 to finance its budget deficit, President Traian Basescu said Tuesday.

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Speaking at a parliamentary meeting, Basescu said the country is unable to obtain long-term financing due to its structural deficits.

"No one is lending Romania on long-term, because of the structural deficits," Basescu said.

Romania also faces "huge difficulties in getting three-year loans," he added.

In 2009, Romania and the IMF signed a EUR13 billion two-year standby agreement, part of a larger aid package which includes funds from the EU, the World Bank and other foreign lenders.

Under the agreement, the country pledged to reduce its budget deficit to 4.4% of the gross domestic product in 2011, from a gap of 7.4% of GDP in 2009.

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