Both Ruling Parties Know Romania Needs Foreign Financing – PDL Official

Stolojan stated that Romania currently has two options, either to give up foreign financing and sharply reduce productive and unproductive consumption, not being able to finance the high current account deficit, or to take a foreign financing and gain time to carry out the necessary structural reforms.

Stolojan said that foreign direct investments would probably halve this year compared with 2008.

PSD head Mircea Geoana stated that the talks on such an important decision, like an IMF loan, are taking place "on the sly", adding that the foreign loan should not be the problem of the President.

Romanian President Traian Basescu will address the Parliament Monday and will discuss the possibility for Romania to take a foreign loan.

Romanian Prime Minister Emil Boc said Sunday that the Romanian government is in talks with the European Commission to get a foreign loan, and European officials, in turn, are in talks with the International Monetary Fund and often require foreign loan agreements to be coupled with an IMF agreement.

Finance Minister, Gheorghe Pogea, stated last week that Romanian authorities are in talks with EC and IMF to establish the structure, volume and conditions of a potential loan.

The International Monetary Fund presented the Romanian delegation in Washington a series of conditions for an agreement, and a decision on inviting IMF experts to Bucharest to negotiate a loan will be made after the Romanian authorities analyze the proposed terms.