What the newspapers say: March 19, 2009

All news on Thursday is about the IMF loan and the fact that president Basescu’s daughter decided to run in the elections for the European Parliament as an independent. Most news refer also to the new IMF prognosis for the Romanian economy, pointing at a negative growth of 4%.

Elena Basescu, president Basescu’s youngest daughter, will resign from the Democrat-Liberal Party (PDL), in order to run as an independent in the European Parliament elections, Evenimentul Zilei reads. Her decision to run for a MEP seat recently caused a lot of negative comments in the Romanian media and also some criticism from other PDL candidates.

Meanwhile, president Basescu was busy demanding the city halls to support – where possible – the construction of residential complexes where the works are stuck because of the crises, Evenimentul Zilei reads. Investors are skeptical about the way such a solution could be implemented.

A prove that not everything Basescu says comes to life is the fact that credits are still under lock. Despite the fact that Basescu advised banks to lower the interest rates and unblock credits, invoking the financial aid Romania will receive from the International Monetary Fund, banks seem still far from reacting, Gandul reads.

The worst news of the day comes from the latest IMF report, which estimates a 4% budget deficit and a negative growth of the economy between -3 and -4%, Evenimentul Zilei reads. The previous figures were pointing at a -1.5 – +1% economic growth. The national budget was put up taking into account a 2.5% economic growth. Cotidianul explains the new IMF figures: Romania will have a GDP 11 billion Euros lower than in 2008.

Meanwhile, the Government paid over 1 billion Euros worth of debt inherited from the Tariceanu government as unpaid bills, Gandul reads.