Romania can only borrow three billion euros in 2010. Elsewhwere in the news, Romanian IMF representative claims that ex-IMF chief Kenneth Rogoff rushed to judge when saying that Romania risks to be unable to pay back. Last but not least, Romanian Work Ministry proposed that the retirement age should be 65 for both men and women in order to save the pension fund.
Romania can only borrow three billion euros in 2010, Gandul reads. Starting 2011, Romania will have to survive from its own savings. The local economy cannot support a public debt bigger than 35% of the GDP, Romanian IMG representative Mihai Tanasescu claims. In January 2010, Romania's public debt was already 29%. Tanasescu said the development needs to continue and the real economy should support the Government.
The publication estimates that Romania's public debt might reach 33-34% by the end of 2010, namely 43 billion euros. This means that in 2011, Romania can only borrow 2% of the GDP, that is three billion euros, depending on the economic growth this year. Romania's public debt doubled in two years and a half. The country can afford to borrow less compared to other states because it has little access to reasonable interest rates, budget revenues are low and the funds allocated to paying up bank interests continue to grow.
The Finance Ministry can now borrow with a 7.88% interest rate for lei credits, instead of 14%, the interest in 2009. The newspaper estimates that Romania will get new loans to pay old ones. Tanasescu says Romania has a good potential for economic growth in the years to come and estimates the growth this year at 1.3-1.5%.
According to Cotidianul, Tanasescu claims that ex-IMF chief Kenneth Rogoff rushed to judge when saying that Romania risks to be unable to pay back, whether or not the IMF agreement continues. Tanasescu motivates by indic
