Romania’s Agreeement With IMF Only To Finance Budget Deficit – Ex-Fin Min

“The meeting (between Parliament and central bank representatives – e.n.) strengthened my view that the agreement with the IMF has the only duty to finance a budget deficit which the government cannot control,” Vosganian said after the meeting.

Vosganian, a member of the opposition Liberal Party and the former Finance Minister, said there is no study showing the private companies cannot pay their external debts totaling EUR24 billion, as the loans are not even “immediate due”.

Vosganian also said the banks have are stable as financing lines will not be withdrawn.

Romania’s central bank governor Mugur Isarescu took part Wednesday at a debate within the Parliament on the country’s current economic and monetary status, following the agreement with the IMF.

Romania and IMF agreed last week on an economic program supported by a EUR12.95 billion loan under a two-year stand-by arrangement. The total value of the financial package that includes a EUR5 billion loan from the European Union, and an EUR1 billion loan from the World Bank is of EUR19.95 billion.