Romania will sign a new loan agreement with the International Monetary Fund in 2011 to finance its budget deficit, Romanian President Traian Basescu said Tuesday.

Speaking at a parliamentary meeting, Basescu said the country is unable to obtain long-term financing due to its structural deficits.  "No one is lending Romania on long-term, because of the structural deficits," Basescu said. Romania also faces "huge difficulties in getting three-year loans," he added.

In 2009, Romania and the IMF signed a EUR13 billion two-year standby agreement, part of a larger aid package which includes funds from the EU, the World Bank and other foreign lenders.

Mediafax