Romania's opposition Social Democrat Party says it will contest the result of Sunday's presidential election. It has accused incumbent President Traian Basescu, who won with a margin of less than one percent, of electoral fraud.

Earlier today, Romanian President Basescu claimed he had won the presidential run-off as he secured 50.33 percent of the vote. Exit polls had predicted victory for his Social Democrat opponent, Mircea Geoana, who won 49.66 percent of the vote.

The bitter election campaign was fought against the backdrop of the country's severe economic crisis. The centre-right President Basescu, who is particularly popular with the working class and in rural areas, has vowed to tackle widespread corruption in his country and bring political and economic stability to Romania.

The International Monetary Fund has said it will hold back a 1.5 billion-euro aid loan originally planned for December until a new government and a cost-cutting budget are in place. The country has been led by a caretaker government since October and even if President Basescu serves another term in office, analysts say his majority is not enough to solve Romania's economic and political woes

Photo incumbent President Basescu by EPA