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Romania Unable To Recover External Debts As Debtor States Refuse Negotiations – Govt Report

Romania is having trouble recovering external debts from export operations unfolded before 1990, because some African countries face major economic problems while other states firmly refuse any debt payback negotiations.
Romania Unable To Recover External Debts As Debtor States Refuse Negotiations – Govt Report
02 aug. 2009, 14:42, English

Romania has not yet managed to start negotiations with Sudan, Nigeria, Somalia and Tanzania, which owe a total $185 million, nor with authorities in Cuba which owe 1.1 billion rubles (accounting for 99.7% of Romania’s receivables in this currency), while talks with Libya over a $45.5 million debt have not been completed, states a government report obtained by MEDIAFAX.

"Major economic, financial and currency difficulties faced by a number of African countries that owe Romania 79.4% of all receivables unregulated so far, the fact that some debtor countries are affected by conflict or are ‘post-conflict’ states and the firm refusal of Cuban authorities to accept the start of negotiations to repay its loans affect the debt recovery process," the government report states.

According to the report, Cuba’s refusal to negotiate is due to its economic and financial situation and the lack of political will in the country to discuss the payment of debts to its former socialist creditors.

Romania is also having trouble in starting or completing pay-back negotiations with other countries, such as Libya, North Korea and Sudan.

On December 31, 2008, Romania’s receivables from exports, international economic cooperation and another such actions that took place before the fall of communism at the end of 1989, amounted to $1.2 billion and 1.1 billion rubles.

Romania’s biggest debtor was Iraq, which is supposed to pay $977 million between January 2009 and March 2028, based on an agreement signed in August 2005.

The list of debtors also includes Sudan ($169.8 million), Syria ($45.8 million), Mozambique ($14 million), Libya ($45.5 million), Guinea ($2.3 million), Central African Republic ($10.6 million), Nigeria ($12.5 million), Somalia ($2.5 million), Tanzania ($99,000), North Korea ($546,952), Cuba (1.1 billion rubles) and Mongolia (3 million rubles).