Romanians protest at fund failure

Protesters set light to a car

Angry protests have erupted in the Romanian capital, Bucharest, after a savings scheme stopped pay-outs to thousands of investors.

Hundreds of protesters blocked the traffic outside the main government building, shouting: "Thieves - we want our money back".

A car was set alight after its driver apparently lost control and drove into the crowd.

Riot police cordoned off the area

Riot police armed with shields and clubs intervened and cordoned off the area, while fire fighters put out the blaze.

The action in Bucharest is the latest in a string of protests around the country, after the National Investment Fund (FNI) ceased payments to its 300,000 investors two weeks ago.

Investigation

On Sunday, marchers in the capital called for a boycott of local elections in response to the FNI's failure to pay up.

The government has suspended the FNI and launched an investigation into its affairs.

Officials are also looking into the activities of the state-owned commercial bank CEC, which is associated with FNI.

The protests come during sensitive talks between Romania and the International Monetary Fund concerning the extension of a $540 million standby loan.

The IMF is due to decide on the extension of the loan, after giving Bucharest until Wednesday to solve the problems related to FNI and other financial matters.