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IMF: Romania’s Decision To Waive On Final Installment Unmeddled With

Romania’s decision not to draw the last installment from its EUR13 billion loan with the International Monetary Fund was made of the government’s own accord and it sends a positive signal to investors worldwide, an official of the International Monetary Fund said Tuesday.
IMF: Romania’s Decision To Waive On Final Installment Unmeddled With
Oana Gavrila
08 feb. 2011, 11:59, English

Speaking at a press conference in Bucharest, IMF mission head Jeffrey Franks dismissed media reports about the fund refusing to disburse the final tranche, worth EUR1 billion, to Romania.

„That statement is completely incorrect,” Franks said, adding that the central bank has sufficient reserves and it doesn’t need to draw the last installment from the IMF.

On Sunday, Romanian President Traian Basescu said the country would not access the final loan tranche from the IMF, as the economic situation has improved and the central bank has enough reserves.

However, Romania will draw the final installment, worth EUR150 million, from the European Commission under a EUR5 billion assistance program. The cash will be used to cover the budget deficit, he added.

Joint teams from the International Monetary Fund, the EU and the World Bank on Tuesday have concluded a two-week review assessment regarding Romania’s progress under a EUR20 billion multilateral financing program.