“The agreement with the IMF will play a major part in reviving lending. Of the amount we will borrow from the IMF, about two thirds will go to the central bank and less than one third to the Finance Ministry, and, from there, a sum will be distributed to banks, to be used for granting loans,” Boc said Wednesday in a conference organized by Romanian business daily Ziarul Financiar, in partnership with consultancy firm PricewaterhouseCoopers.
Boc explained the amounts transferred to the Finance Ministry will help financing the budget deficit and supporting the economic growth through investments, as there will be more money on the market.
Currently, the ministry is the leading actor on the market, as it attracts most of the money to finance the deficit, Boc added.
“Through this agreement with the European Commission, the IMF and other banks I mentioned (EBRD, World Bank- e.n.), we will be able to provide the economic and psychological signal of re-launching lending activity in the Romanian economy,” Boc said.