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Romania To Get New Tranches Despite Missed Inflation Target – IMF Official

The International Monetary Fund will most likely continue its financing program with Romania and will release two new tranches of a EUR13 billion loan, despite the eastern European country’s failure to meet its inflation target in 2009, IMF mission head Jeffrey Franks said Thursday.
Romania To Get New Tranches Despite Missed Inflation Target – IMF Official
21 ian. 2010, 13:40, English

Franks said Romania and the IMF are currently discussing the conditions attached to the new loan tranches, adding that further comments at this time would be „premature.”

Romania’s central bank missed by little its annual inflation target in 2009, after the rate widened to 4.74% end December, above its 4.5% upper figure.

According to Franks, Romania’s economy will return to a positive track once macroeconomic stability is reached. One of IMF’s roles is to help countries reach such stability, he added.

The economic growth is likely to step up toward the end of this year, Franks said.

An IMF mission is in Romania between January 20 and January 27 to assess the country’s economic performance in view of disbursing additional EUR2.3 billion from its loan.

Romania and the IMF signed last spring a EUR12.95 billion two-year arrangement as part of a wider EUR19.95 billion aid package which includes funds from the EU, the World Bank and other international lenders.

The eastern European country has received so far roughly EUR7 billion from the IMF and another EUR1.5 billion from the European Commission. However, the international lenders have blocked additional funds last year, due to political instability in the country.