Romania to Secure New 5 Billion-Euro Accord From the IMF, EU

Romania will sign a precautionary accord with the International Monetary Fund and the European Union worth 5 billion euros ($6.8 billion) to provide a safety net during Europe’s sovereign-debt crisis, President Traian Basescu said.

The Balkan nation doesn’t expect to draw money from the two-year agreement, which will reassure investors that disciplined fiscal policies will remain in place through a general election next year as the government narrows the budget deficit to below 3 percent of gross domestic product in 2012, Basescu said yesterday in a televised speech from Bucharest. The IMF will set aside 3.6 billion euros for Romania under the new deal, while the EU may provide 1.4 billion euros in case of an emergency, he said.