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IMF To Decide On EUR850M Loan Tranche For Romania Friday

The International Monetary Fund’s board will convene on July 2 to review Romania’s progress under a EUR13 billion loan agreement and decide on whether to disburse a new tranche to the country, Finance Minister Sebastian Vladescu said Tuesday.
IMF To Decide On EUR850M Loan Tranche For Romania Friday
29 iun. 2010, 12:43, English

The IMF was initially set to review the loan agreement Monday, but the meeting was postponed after Romania’s top court rejected part of a government-imposed austerity plan aimed at boosting revenue and taming the budget deficit.

In response, the authorities in Bucharest decided to increase the sales tax by five percentage points to offset the court’s ruling and ensure the continuity of its agreement with the IMF.

Separately Tuesday, Vladescu said a new IMF-led mission will be in Bucharest between July 20 and July 23 to assess the country’s economic performance during the first half-year.

He said the government will make its half-year budget revision following talks with the IMF team.

Last year, Romania signed the agreement with the IMF as part of a larger EUR20 billion aid package which includes funds from the EU, the World Bank and other foreign lenders.

So far, the country received around EUR9.2 billion from the IMF and is scheduled to get another EUR850 million pending IMF board’s approval.