First Vice President of the Democratic-Liberal Party (PDL) Theodor Stolojan said that the Romanian state will submit an official request to the European Commission for a loan within ten days, Business Standard reports.

"We cannot wait too long because resources are limited," stressed former Prime Minister Stolojan. He added that "we are talking about several billion euro, at least €5 billion, depending on how much of the value of the short-term private debt the authorities estimate will roll over in 2009. A macroeconomic stability program is needed for such an amount, which would be conducted by the Fund.

According to Stolojan, the European Commission (EC) will discuss any loan Romania solicits with the IMF. "All roads lead to the European Commission," added Stolojan. The National Bank of Romania (BNR) is analyzing, together with government representatives, the optimal amount to be borrowed from abroad, considering costs and a reasonable payback schedule, according to the Governor of Romania's central bank, Mugur Isarescu, on Monday. He added that Romania, as a member of the European Union (EU), must consider European funds, and that an evaluation of the country's absorption capacity is currently being conducted.

Also, BNR is taking into consideration the possibility of obtaining financing from the IMF, the World Bank, and the European Bank for Reconstruction and Development (EBRD). Last week, Isarescu said that a possible agreement with the IMF should be included in a deal package with European institutions. BNR's Governor indicated that an IMF loan represents a swap operation to protect foreign currency reserves and is not reflected in the economy but rather through possible BNR interventions.

European Commissioner on Economic Policies Joaquin Almunia said, according to Reuters, quoted by the Mediafax news agency, that the EU could be forced to save a member state facing financial problems, but that such action is unlikely. "We cannot rule out the fact that a state outside the euro-zone could request assistance, but we do not think it will come to this," Almunia said. In Romania's case, Prime Minister Emil Boc said that the country needs €5-9 bln in external funds. Bankers and businesspeople see a loan from the EC and an agreement with the IMF as either an essential element for regaining stability or a necessary evil that the state must accept in current conditions.

The Chief Economist of Banca Comerciala Romana (BCR), Lucian Anghel, said that a loan from the EC is inevitable, and the more we wait, the more expensive such financing will become.

The CEO of Microsoft Romania, Calin Tatomir, said that Romania cannot escape an institutional loan, though this is not the best option. "I do not know if we should, but I think it will come to this. On the other hand I think that any agreement with the IMF in Central and Eastern Europe provides greater stability, I am talking in terms of country ratings, so, from this point of view, such agreements are beneficial," Tatomir added.

Source: Standard.ro