Romania, IMF Eye EUR3.6B Precautionary Deal - Sources

"The most recent estimations show the IMF will allocate EUR3.6 billion to Romania. The funds will be used only in emergency situations," the quoted sources said.

The amount was put forward during discussions on the new agreement, and it is based on economic data currently available. However, the sum could be changed in the next months to match the economic indicators and Romania's financing needs, the people added.

Romanian authorities intend to sign a one-year precautionary deal, as 2012 is an election year. The exact term of the new agreement will be set after the IMF's Board meeting on Friday, when the fund decides if releasing a new installment, worth around EUR900 million, out of the current loan.

In May 2009, Romania agreed with the IMF on a EUR13 billion stand-by arrangement, part of a EUR20 billion financial support that includes funds from the European Union, the World Bank and other international lenders.

Romanian President Traian Basescu, Prime Minister Emil Boc, central bank governor Mugur Isarescu, and Finance Minister Gheorghe Ialomitianu on Thursday set the terms of the new agreement with the IMF and the EU, in a meeting at the central bank, according to a central bank statement that didn't provide additional details.

An IMF delegation is expected in Bucharest on January 25 for reviewing the current arrangement and talks on the new deal.

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