Rumania nearly bankrupt

Press, 5 March 1982, Page 6

Rumania nearly bankrupt

NZPA Paris Rumania, which seems to be on the way to bankruptcy, has now officially admitted the gravity of its financial situation by asking 320 Western banks to reschedule most of its commercial debts for 1981 and 1982.

French banking sources said this meant that the first step had been taken along a path that would inevitably lead Rumania to accept international negotiations

with Western countries, and with the East European Comecon trading bloc to which it was heavily indebted. Rumania owes about ?USII,OOO million in commercial and Governmentsecured loans to the West, compared with the $U527,000 million owed by Poland. Of this figure nearly SUS39OO million is in shortterm debts, of which SUSI2OO million of principal was due

in 1981 and SUS27OO million is due this year, according to Rumanian estimates.

Banking circles noted that these sums did not include interest. Talks at the moment concern only the commercial debts accounting for 40 per cent of the total, and are being held with international banking houses.

In a telex to 320 Western banks earlier this week, the President of Rumania’s external trade bank, Nicolai Eremia, outlined a plan for financial restructuring.

Rumanian officials are seeking first a rescheduling of 80 per cent of the repayment of principal, and of interest still due from 1981 or payable in 1982. Payment would be made over 6V2 years after a threeyear grace period. Interest would be the six month Eurodollar rate plus 1.75 per cent with an additional one per cent commission for renegotiation.