Romania Won’t Need To Raise Taxes Following IMF Agreement – IMF Official

Tanasescu said Romania wouldn’t have to raise taxes or VAT following an agreement with the IMF. He also said the country plans to borrow EUR18 million to EUR20 million from international financial institutions.

Tanasescu, a former finance minister, said the agreement with the IMF comes at a time when Romania needs financial discipline and one of the items on the agreement will refer to a law of financial responsibility and multiannual budgets.

He also said an important element of discussion between Romanian authorities and the IMF regarded social issued and an IMF agreement would give the country stability, predictability and restore investor confidence.

Asked what Romania could do beside sign an agreement with the IMF, Tanasescu said alternative solutions are few, because the world financial market lacks liquidity and confidence in the banking system.

"This is one of the few alternatives Romania has to convey the message that it can mend its past mistakes,” he added.