Romania’s banking industry will witness a ‘‘shock’’ increase in its non-performing loan ratio in the last two months of this year following a central bank investigation into lenders’ practices on reporting bad debts.
The International Monetary Fund and European Union put an aid agreement with Romania on hold after the country’s president refused to approve a review of the deal in a dispute over a fuel tax, Prime Minister Victor Ponta said.
Romanian President Traian Basescu says he won’t sign letter of intent and memorandum after IMF review because govt introduced additional fuel tax. *Rejection won’t cause problem as Romania doesn’t depend on IMF money, Basescu says on state TV *Basescu said IMF mission to return to Romania in Jan. and govt can renegotiate the tax so that the memorandum will be discussed by the lender’s board later that month *“The govt can also choose to send documents to the IMF without my signature:” Basescu *“An additional excise on the fuel prices would only hurt consumption and the economic recovery:” Basescu *NOTE: Romanian President Says He May Reject 2014 Budget on Fuel Tax NSN MWT8HP6JTSE8 <GO> *NOTE: Romania Reaches Agreement With IMF on $300 Million Loan Tranche NSN MVSDZ66K50Y9 <GO>
The European Union is weighing a stripped-down addition to the emergency aid available for non- euro nations, after Germany, the U.K. and the Netherlands opposed adding a financial-sector tool to the rescue program.