REPORTERNET.COM

An International Monetary Fund (IMF) mission is visiting Romania to review its loan deal.

The visit is taking place amid anti-government protests over economic conditions. Clashes between protesters and riot police for the fifth day in the capital Bucharest have left 59 people injured.

Romania had, until now, avoided the type of violent street protests that have shaken Greece and other indebted European states despite state job and wage cuts and a value-added tax hike imposed to maintain a vital bailout led by the IMF.

Emil Boc, the Romanian prime minister, has warned anti-government protesters that violence will not be tolerated.

Before the recession, Romania enjoyed a decade of steady economic growth.

Strong demand from European markets and domestic consumption and investments fuelled GDP growth, but it also led to a widening account deficit.
In the last quarter of 2008, Romania began to feel the effects of the global downturn.

In 2009, its GDP fell by more than seven per cent, prompting the government to ask for an emergency loan from international lenders.
"The IMF's conditionality will work only if it is done together with the Romanian government. It won't work properly if the IMF tells them what to do. It's the responsibility of the political class to make sure they know what they really want from the IMF, not just the money, but also the type of austerity measures they can and cannot take."

(source: www.aljazeera.com)