EU to resume bailout loan to Romania

10:21, January 28, 2010      

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A top economic official of the European Union (EU) said on Wednesday that the EU may soon resume bailout loan to Romania after the it was frozen due to a political crisis in the country.

Joaquin Almunia , European Commissioner for Economic and Monetary Affairs, said in a statement that he was confident that the Euroepan Commission would be able to transfer the second loan installment of 1 billion euros (1.4 billion U.S. dollars) soon, which had only been postponed because of delay in adopting the 2010 budget.

Last year, the EU, the International Monetary Fund (IMF) and the World Bank agreed to lend Romania 20 billion euros to bail the country out of the economic crisis.

The EU delivered the first installment of 1.5 billion euros to Romania in July 2009. But the second installment was frozen in October after the Romanian parliament dismissed the government, which led to delay in adopting the 2010 budget.

"The multilateral assistance package, including the 5 billion loan by the EU, has helped improve the economic conditions and outlook in Romania by easing financial tensions and external financing pressures, " Almunia said.

But the commissioner said that the efforts needed to continue, notably for what concerns the budget deficit, to ensure a stronger and more sustainable economic activity in the future.

If the EU concludes that the conditions set for Romania are met, the second installment of 1 billion euros will be delivered in March this year. The rest will be disbursed in three installments before the first quarter of 2011.

Source: Xinhua
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