Tags: Romania | Currency | Government | Falls

Romania Currency Hits Record Low as Government Falls

Friday, 27 April 2012 12:13 PM

Romania's currency, the leu, hit a record low on Friday after a confidence vote toppled the country's government.

The currency fell to 4.4010 per euro, before recovering slightly to trade at 4.3975, 0.4 percent lower on the day.

Romania's government lost a confidence vote on Friday just two months after it took office, raising the prospect of months of political turmoil and questions over its austerity program.

The European Union's second-poorest member cut salaries and raised sales tax to put its economy on a more solid footing. But austerity has dragged on economic recovery and has now toppled Mihai Razvan Ungureanu just two months after he took office.

The motion had the backing of 235 MPs, compared with 231 needed to topple the government.

"A new and better government will be coming," said opposition lawmaker Dan Rusanu. A second, government MP confirmed the count.

The International Monetary Fund halted a review of Romania's 5 billion euro aid deal on Friday pending the formation of a new government, an official said.

"Talks would continue at a technical level. The review (which started April 24) cannot be completed as scheduled," Romania's IMF representative in Washington Mihai Tanasescu told Reuters.

"The IMF is now waiting to have a partner for discussion at a government level."

© 2019 Thomson/Reuters. All rights reserved.

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Friday, 27 April 2012 12:13 PM
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