Romania, IMF Set Terms Of EUR5B Follow-up Deal – Ctrl Bk

The agreement will be signed for a period of two years and Romania will not access the funds unless need arises, President Traian Basescu said Sunday evening.

Basescu said the IMF will make available EUR3.6 billion to Romania as part of the new deal, while the remaining EUR1.4 billion will come from the EU.

In 2009, Romania signed with the IMF a EUR13 billion loan deal, part of a larger EUR20 billion package that includes funds from the EU, the World Bank and other foreign lenders.

Basescu said Romania would not draw the final tranche, worth EUR1 billion, from the IMF loan, as the central bank’s reserves are sufficient.

However, the country will draw the last installment from the EU and will use the money to finance the budget deficit, he added.

According to Isarescu, the installment, worth EUR1.35 billion, will be drawn late March or early April.

Joint teams from the IMF, EU and the World Bank arrived in Bucharest February 25 for the final review of the agreement and for discussions regarding the follow-up deal.