IMF, Romania To Discuss New Agreement Once Govt Sends Clear Signal Of Intent

Franks said the type of agreement will be determined once the Government clearly expresses its wish to initiate talks on the matter. He added that no discussions have yet taken place.

The IMF representative explained that a new agreement will definitely entail a new set of reforms, aimed at bettering the infrastructure, state-owned companies and the labor market. These reforms will not be included on the agenda of the current agreement, which is already full, said Franks.

The evaluation mission head said Romanian President Traian Basescu expressed his interest in perfecting a new agreement with the IMF next spring, once the current deal is completed.

The IMF approved Friday the disbursement of approximately EUR900 million to Romania, following a new review of the country’s performance under a EUR13 billion standby agreement. The board also accepted a third waiver of non-observance of the performance criterion pertaining to Romania’s general government domestic arrears.

Romania and the IMF agreed last spring on a EUR13 billion loan, as part of a larger EUR20 billion aid package that includes funds from the European Commission, the World Bank and other international lenders. So far, Romania has received around EUR9.2 billion in IMF money and another EUR2.5 billion from the Commission.