Romania needs a new deal with the International Monetary Fund, a standby loan to draw upon in case of need once the current loans expire, AP quoted President Traian Basescu as saying today. In 2009, Romania negotiated a ¤20 billion ($25.16 billion) loan with the IMF, the European Union and the World Bank. The agreement ends next year. Part of the funds helped pay state wages and pensions last year, when the country's economy shrank by 7.1 percent. «Categorically, Romania needs a new accord with the IMF,» Basescu said in an interview with the public radio station. He said he would prefer a precautionary agreement, which would allow Romania to access funds only if it faces a critical situation. He warned that a new loan would need to be used as investment rather than to help pay for pensions and wages. «I would agree to a new loan in 2011, if all the money goes into development,» Basescu said. -- SPA
