"We have concluded the right solution for Romania is to continue restructuring and consolidation programs agreed with the International Monetary Fund, European Union and the World bank,” Basescu said after a meeting with the central bank governor, the prime minister, the finance minister and the head of the country’s Fiscal Council, an independent body which assists the Government and the Parliament with setting up and implementing fiscal and budgetary policies.
The head of state also called on the media to be cautious in its depictions of current events citing the importance of psychological factors and the need to steer away from panic-inducing reports.
Basescu said he refuses to use the word ‘crisis’ to qualify the instability on financial markets, calling it instead a mere "reaction" to "unconvincing measures taken by politicians in Europe and in the U.S."
"Romania should remain cautious. We have managed to restore some fragile macroeconomic indicators but the international situation requires us to be cautious and prudent," said Basescu.
In March, Romania and the IMF signed a EUR5 billion loan agreement, successor to a larger EUR20 billion bailout package that ended in April this year. Under the new deal, the IMF will disburse Romania EUR3.5 billion, while the EU and the World Bank contribute with EUR1.4 billion and EUR400 million, respectively. However, Romania will access the funds only in case of economic distress.
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