Estimated read time: Less than a minute
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
BUCHAREST, Romania (AP) - Romanian President Traian Basescu says he won't sign a letter of intent and International Monetary Fund memorandum to protest a government decision to hike fuel prices.
In November, the government said it would increase 1 liter (0.26 gallon) of fuel by seven eurocents (5 U.S. cents), which Basescu said was aimed at raising revenue for elections next year.
Basescu said Monday "this measure ... harms Romania's interests and economic recovery," and will hit retirees the hardest. Basescu said the IMF's mission will return to Romania in January and the government can renegotiate the tax. He said his refusal to sign the memorandum wouldn't hurt Romania.
The IMF approved a 1.98 billion-euro ($2.68 billion) precautionary loan to Romania in September that the government said it will not draw on.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)