Brussels - The European Union's executive on Tuesday formally called on
the bloc to offer Romania a 5-billion-euro (6.5- billion-dollar)
bail-out to save it from financial collapse.

The hand-out, part of a 20-billion-euro deal agreed in principle with
the World Bank and International Monetary Fund on March 25, is intended
to support Romania's currency, battered in the recent economic storm,
and to keep its government solvent.

It comes with a demand that the country bring its government deficit
back under the EU's approved limit of 3 per cent of gross domestic
product (GDP) by 2011, the European Commission said in a statement.

Romania will also have to strengthen its national financial regulations
and improve the transparency and general competence of the public
authorities to qualify for the funding.

The EU funds, to be raised on international money markets, will be paid out in up to five instalments over the next two years.

EU finance ministers are expected to approve the commission's proposal on May 5.

Romania is the third EU member to need an emergency bail-out from the
bloc, after Hungary and Latvia applied for help in late 2008.

Since the collapse of US investment giant Lehman Brothers in September
triggered global financial chaos, the EU has more than quadrupled the
amount of money it can offer to protect member states from bankruptcy,
to a current maximum of 50 billion euros. (dpa)