Romanian president: Country will borrow EUR 16 bln in 2012

Romania stands by its 1.9 percent deficit target in 2012, and hopes to reach a zero deficit in 2015, as agreed for the EuroPlus Pact, said Romanian President Traian Basescu (in picture). An increase in the budget deficit would mean more loans for Romania, beyond the EUR 16 billion already planned for 2012. The intention is for the country to borrow as little as possible, as borrowing costs have risen.

Romania will have to borrow EUR 13.5 billion to roll over previous loans, and some EUR 2.5 billion to cover the 1.9 percent deficit. “These are not debts of the existing Government. We are talking about short – term debt which is being rolled over, from 2007-2008. Think about the fact that in 2008 we took short – term loans – 3, 6 to 12 months, at huge interest rates, at a 4 percent deficit. We have been rolling them over since,” said Traian Basescu in a press conference Sunday (December 11) night. editor@romania-insider.com (photo source: Romanian Presidency)