BNR: Romania unlikely to default in payment

At the same time, the International Monetary Fund will give us the third tranche of the loan without being very rigid about the observance of the previously established conditions said Cezar Coraci, president of the UGIR 1903 employers' association told also the national radio station.

'The International Monetary Fund will extend the third tranche of the loan without being very severe on the observance of the previously established conditions. For the time being, the money that we will borrow will cover some of Romania's deficit, as I haven't heard of any renegotiations on the agreement's conditions being discussed. As far as I know we haven't quite observed the conditions, however we'll receive the tranche of December, which, unfortunately, will not cover the necessary for the upcoming months. Therefore, the Romanian Government will be forced to find other financial resources for the financing of the external deficit. The loan from the private capital market will be made bat higher costs, not with a 6-percent interest as the IMF gave us, but with 12-13 percent or even more. Also, taking the liquidity from the market the Government will contribute to the aggravation of the effects of the crisis, practicing unfair competition to business operators. A bank stands no risk by lending money to the government with a 12-percent interest, however if is it lends a company with 13-14 percent major risk might arise., said Cezar Coraci.

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