IMF To Defer Loan Disbursement To Romania For Jan 2010 – Sources

„The tranche will most likely be postponed for January, so that the 2010 budget is drafted and approved in parliament. The main concern is that political issues are solved,” according to the quoted sources, who attended the talks between IMF and Romanian officials.

Romania has met almost all targets of its EUR13 billion standby arrangement with the International Monetary Fund, with maybe one exception, IMF mission’s head Jeffrey Franks said Wednesday.

According to the sources, Franks was referring to Romania’s general government domestic arrears.

An IMF mission is in Bucharest for the second review of Romania’s EUR20 billion IMF-led bailout loan.

The IMF is expected to present its preliminary conclusions of the assessment report in a news conference at GMT1200 today.

Romania was thrown deeper into political crisis Wednesday, after the parliament blocked a new government proposed by economist Lucian Croitoru.

President Traian Basescu is expected to announce a new nominee, most likely from his own democrat liberal party, despite a parliament-endorsed independent candidate.

The country’s government collapsed in a no-confidence vote mid-October.