Romania: Press review

January 21, 2010

Romania: Press review - January 21

Bucharest, Jan 21 /Agerpres/ - The Romanian dailies on Thursday carry reports on the spending made by the presidential candidates in last November's election campaign, the directions of the Romanian foreign policy announced by President Traian Basescu at a meeting with the ambassadors accredited in Bucharest, the prospects facing the country's foreign debt and the harsh winter with heavy snowfalls that has blanketed Romania over the last days.

The contenders in the last presidential elections communicated the Standing Election Authority the figures showing they spent with thrift during the campaign. Winner Basescu says his campaign budget went up to a little over 3 million euros, i.e. just 14.9 million lei. Social Democrat Mircea Geoana spent 12.5 million lei, while Liberal Crin Antonescu declared spending worth 10.7 million lei, Jurnalul National reports.

President Basescu at a meeting with the foreign ambassadors accredited in Bucharest on Wednesday outlined the main directions of the Romanian foreign policy in the upcoming period. He reproached the United States that Romania stood by its side in Iraq and Afghanistan, but he stressed that 'friendship lasts when both partners know how to give', Romania libera reports.

At the meeting with the foreign ambassadors, Basescu made a ranking of the international players with which Romania has relations. He placed the European Union on the top position, underscoring that Romania 'is interested in strengthening its position' in the European bloc; then he cited France, without the help of which Romania would not have got the position of the European commissioner for agriculture. Thirdly, he spoke of the United States, drawing its attention that Romania has met all its obligations, but it expects something in exchange. Last among the most important states Basescu cited Russia. 'There are pre-conditions to re-build a relation based on trust with the Republic of Moldova', Ziua quotes Basescu as saying in a headline. Adds Cotidianul: 'Basescu says the Republic of Moldova is Romania's emotional project''.

Coface Romania has kept Romania's credit rating at B, but there is hope it could be upgraded by year-end, when the economy will recover. The first part of the year will be marked by bankruptcies and a lack of liquidity, Coface Romania says. Bankruptcies could surge some 15 to 20 percent this year against 2009, when between 19,000 and 19,500 such cases were recorded, the Bucharest print media quotes Cristian Ionescu, Coface managing director for Romania, Bulgaria and Slovakia as saying.

The International Monetary Fund has an ambitious agenda of reforms and programmes in Romania this year, the implementation of which will prepare the economy for a re-start after emerging out of the crisis. The IMF money will come to Romania on Feb. 21 at the latest, Jurnalul National says. Jeffrey Franks, the chief of the IMF mission that monitors the stand-by agreement said there is a very ambitious agenda of reforms in Romania and added he is optimistic about the progress to be made in 2010; when the downturn ends, the economy will be ready for re-start, Franks stressed. He believes 2010 will see the economy return to growth, and Romania could be a success story'.

Ford Romania will invest this year another 400 million euros in its factory based in Craiova (southern Romania), after the capital increase of 250 million euros in last January, Ziarul financiar announces. Public Finance Minister Sebastian Vladescu, vice president of the European Investment Bank Matthias Kollatz-Ahnen and Wolfgang Schneider, Ford Europe vice president for governmental and environmental issues on Thursday will sign an agreement for a 400 million euros loan aimed at the U.S. carmaker's Craiova-based plant, the national newspapers report.

The downturn will continue in Romania in 2010 too - there will be by 15-20 percent more bankruptcies compared to last year, when more than 19,000 firms closed their operations. The number of bankruptcies had surged 30 percent in 2009 from 2008, Evenimentul zilei quotes Coface Romania representatives as saying.

According to calculations cited by Gandul, the Romanian debt will go up to 43 billion euros by year-end, a 17.5 percent rise from 2009. Although the debt is currently under control', Romanian IMF representative Mihai Tanasescu says there already are question marks' regarding its future development. He cited the example of Greece, which is on the brink of bankruptcy because it spends more than it has in its coffers, the same as Romania does. Moreover, chief of the IMF mission Jeffrey Franks announced that all the money, starting with the fifth loan tranche, will go to the National Bank of Romania, while the Finance Ministry will no longer get anything for pensions and wages.

After Romania saw heavy snowfalls early this week, the weather forecasters now announce the temperatures will plunge well below freezing, Thursday's dailies report. The National Meteorology Administration said temperatures will fall constantly, down to minus 22 C degrees at the weekend. There will be extreme cold all over Romania and there will also be snow. AGERPRES

[www.romaniapress.com]

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