Romania’s Agreement With IMF, EC Deemed Preventive – PM

The preventive nature of the agreement also arises from the fact that neither the flat tax, nor the value added tax has to be hiked, Boc added.

Romania can stop several negative effects of the economic crisis through preventive measures, Boc said at a conference organized by Romanian business daily Ziarul Financiar in partnership with PricewaterhouseCoopers (PwC).

“The agreement with the IMF will play a major part in the lending resuming. 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 for lending,” Boc said.

The Prime Minister said he also discussed Wednesday with the European Bank For Reconstruction and Development who seemed willing to grant new credit lines.