Prima pagină » English » Romania Must Cut Arrears To Get New IMF Aid – Sources

Romania Must Cut Arrears To Get New IMF Aid – Sources

The International Monetary Fund is likely to ask Romanian government to pay at least part of its arrears to companies before disbursing a new installment of its EUR13 billion loan, people familiar with the matter said Friday.
Romania Must Cut Arrears To Get New IMF Aid - Sources
Ovidiu Tempea - Mediafax
29 oct. 2010, 14:50, English

Only in the healthcare sector, government arrears sum up 1 billion lei (EUR1=RON4.2664), despite the payment of RON2 billion made in September, the mentioned sources told MEDIAFAX.

„This situation is not limited to the healthcare system, but can be found in the infrastructure sector as well, particularly in the territory,” the people familiar with the issue said.

They said the IMF would demand part of the arrears be paid as a pre-condition to release a new loan tranche to Romania, worth EUR870 million.

End-June, Romanian government arrears stood at RON2 billion, double the half-year target agreed with the IMF.

The country must bring its government arrears down to RON480 million by year-end and eliminate them altogether by the end of the IMF program in 2011.

An IMF mission will be in Bucharest until November 1 to assess the country’s progress under its EUR13 billion loan and decide on the disbursement of new aid.