Croitoru Becomes New Romania PM, IMF Postpones Mission

Lucian Croitoru, Romania's former representative to the International Monetary Fund, has become the country’s new PM.

President Traian Basescu named Croitoru to head the goverenment after the collapse of Emil Boc's centre-right administration in a no-confidence vote on Tuesday.

An economist by training and currently advisor to the head of the Romanian central bank BNR, Croitoru was Bucharest's representative to the IMF between 2003 and 2007.

Meanwhile, Basescu said the IMF has postponed a mission to Bucharest to review progress under its EUR 20 B aid accord until after a new government is found.

On Wednesday, Basescu warned: "If we fail to obtain the two tranches of loans, including that due between October and December, we risk finding it impossible to pay salaries and pensions."

Three opposition parties, the Social Democrats (PSD), the Liberals (PNL) and the ethnic Hungarian UMD party had put forward their own candidate for the job: Sibiu Mayor Klaus Iohannis.

Romania is already braced for a presidential election on November 22 and the collapse of the government has plunged the country into political crisis as it battles a deep recession.