IMF Releases First Tranche Of EUR12.95B Loan - Romanian Pres

Romanian President Traian Basescu said the International Monetary Fund released Tuesday the first tranche of the EUR12.95 billion loan, adding that ECOFIN approved the European Commission loan to Romania, worth of EUR5 billion.

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“Today (Tuesday - e.n.) the IMF released the money to the National Bank of Romania. We hope tomorrow the funds will be registered at the central bank. Also today, ECOFIN approved the EUR5 billion loan to Romania, of which the first tranche, about EUR1.5 billion, may be attracted before July,” Basescu said.

The Executive Board of the IMF approved Monday a two-year EUR12.95 billion stand-by arrangement for Romania to support an economic program designed by the Romanian authorities. The first installment is worth about EUR5 billion.

The IMF loan is part of a multilateral financial support that will amount to EUR19.95 billion, including EUR5 billion from the E.U., and funds from other international institutions.

The loan agreement with the European Commission entered in the written procedure for approval by the Economic and Financial Affairs Council – ECOFIN – in a meeting that will end Wednesday at 1400.

“The Czech Presidency of the E.U. proposed the financial assistance agreement to enter in the written procedure, a usual practice of the ECOFIN. All E.U. finance ministers attending the Tuesday reunion agreed and made no further comments or remarks,” Romanian Finance Minister Gheorghe Pogea told MEDIAFAX.

The formal announcement on approving the agreement will be made Wednesday at 1400.

The first tranche, worth of EUR1.5 billion, will be released early-July at the latest, while the second tranche, of about EUR1 billion, will be attracted by year-end,” Pogea also said.

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