----- Original Message ----- From: [EMAIL PROTECTED] To: [EMAIL PROTECTED] Sent: Wednesday, March 09, 2005 8:03 PM Subject: [romania-economics] news EU to assess Romania capital account liberalisation EU to assess Romania capital account liberalisation By Radu Marinas BUCHAREST, March 9 (Reuters) - The European Union will push Romania on Thursday to open its financial markets fully to foreign investors despite concerns this may open the gates to potentially destabilising hot capital, diplomats said. They said the issue will be discussed in Brussels between senior Romanian central bank and finance ministry officials and the European Commission, assessing Romania's readiness to join the bloc in 2007. This week, Romania opened its currency market to foreign investors eager to bet on the country's EU convergence but other steps such as allowing them to hold leu deposits need to follow to make the market liberalisation complete. "A team of Romanian experts travels to Brussels to start discussions on the capital account liberalisation scheme with European Commission experts on Thursday," a senior Romanian diplomat told Reuters. "Talks are informal, they will be holding very technical consultations," the diplomat added. Romania has committed to opening its leu deposit market in June but some Romanian central bank officials, seconded by the International Monetary Fund, say some curbs on foreign flows should be in place to prevent a rapid appreciation of the leu. The EU argues for full opening, saying Romania should follow similar steps taken by other central European countries which joined the EU last year. "I think there's going to be a lot of resistance from the Commission on any restriction to the capital flows," an EU source said. "They will also discuss the budget deficit, there's some concern (in the EU) that the IMF are being more Catholic than the Pope," the source added. The IMF argues Romania must slash its budget deficit to 0.4-0.5 percent of gross domestic product to prevent overheating that could accompany currency liberalisation if it leads to strains in the country's current account. The current account tends to widen if a currency appreciates because it makes consumption and investment imports cheaper. The Romanian delegation will be headed by chief EU negotiator Leonard Orban, central bank Vice-Governor Cristian Popa and deputy Finance Minister Dragos Neacsu. 03/09/05 10:13 ET #end ------------------------ Yahoo! Groups Sponsor --------------------~--> DonorsChoose. A simple way to provide underprivileged children resources often lacking in public schools. Fund a student project in NYC/NC today! http://us.click.yahoo.com/EHLuJD/.WnJAA/cUmLAA/RR.olB/TM --------------------------------------------------------------------~-> EuroAtlantic Club: http://www.europe.org.ro/euroatlantic_club/ *** Birou de traduceri autorizate. Oana Gheorghiu - tel/fax: 252.8681 / [EMAIL PROTECTED] Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/romania_eu_list/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
