IMF Review Mission Visits Romania Oct 20-Nov 1, New Agreement To Be Discussed

Tonny Lybek, the IMF’s representative for Romania and Moldova, said the delegation will look at statistics and assess progress made since the last evaluation and decide on the steps to be further taken to ensure macroeconomic and financial stability and help the country go back to economic growth.

IMF officials will also have preliminary talks with Romanian authorities about continuing the current program and negotiations will likely take place early next year.

Romania and the IMF last year signed a EUR12.95 billion two-year standby agreement, as part of a larger EUR19.95 billion package which includes funds from the EU, the World Bank and other foreign lenders. The current loan agreement ends in May 2011.

The IMF review mission will be in Romania until November 1.

Romania’s President Traian Basescu said Sunday he unreservedly supports an agreement for an open credit line from the International Monetary Fund.

IMF mission head Jeffrey Franks told MEDIAFAX about two weeks ago that Romania’s potential new agreement with the International Monetary Fund would be „undoubtedly” smaller than its current EUR13 billion deal.

According to Franks, a precautionary standby arrangement would be like an insurance policy against unforeseen events and Romania wouldn’t need to draw funds from the IMF unless something unexpected happens, such as a regional crisis that could put pressure on the leu’s exchange rate.