Romania To Get Bailout Funds In Tranches, If All Terms Observed – EU Official

Torres said that the observing of the agreed terms will be monitored by EC, as well as the IMF, adding that certain EU member states might also join this effort.

A "back-to-back" loan is a loan in which two parties borrow each other’s currency for a specific time period and repay the other’s currency at an agreed-upon maturity.

Torres said it is too early to speak on other details and amounts of the financial package for Romania.

EC may also grant financial support for states with balance-of-payments problems, worth maximum EUR15 billion, Torres added.

Romanian Government sent European Commission a letter asking for the official start of negotiations for a financial agreement, whose value will be established based on the talks with EC officials and the representatives of the International Monetary Fund, or IMF.

An IMF mission is currently in Romania to hold discussions on a potential IMF program for Romania, regarding a multilateral financing package, to be supported by the European Union and the World Bank, among other international financial institutions.

Government sources told MEDIAFAX Tuesday that the Romanian Government intends to borrow EUR19 billion from the European Commission and the International Monetary Fund, following an evaluation made by the Finance Ministry and the central bank.

Romania will send the International Monetary Fund, after concluding the negotiations in Bucharest, a letter of intent to close a two-year stand-by agreement, with five years to reimburse the loan, official sources told MEDIAFAX.