Nobody fears the IMF, not even politicians or trade unions, Romania's President Traian Basescu declared, on Wednesday in a radio talk show. He added that the temptation to have a counter position than the President made others take this stand.
Here are some of the most important declarations:
- EU conditions any loan to an IMF agreement
- Romania is in this situation because resources were wasted
- Romania will not be sanctioned by the EU on the budgetary deficit, but the EC will critique its previous waste of resources
- Everybody attacked my stand two days ago: the President has every right to address the Parliament in times of crisis and propose solutions
- Romania will take up a 2 year loan with a low interest rate but let's not forget that some billions of euro are involved
- If we reject the idea of austerity, we will have to face serious consequences in two years' time
- If we respect anti crisis measures, we will take up a lower loan
- No responsible expert in Romania will declare that the country can overcome the crisis without a loan
- No private society will receive money from the state from this loan, or budget money
- IMF money will cover the Central Bank reserves which will allow banks to use a part of their reserves at the central bank to finance the economy
- The loan needs to also cover the current account deficit and the state budget deficit
- let's not undermine the capacity of Romanian negotiators to deal with the IMF
- I do not think that the IMF will request a VAT increase or compel Romania to give up its fixed tax. There are other solutions.