Romania Ctrl Bker: A New IMF Deal To Ensure Lower Borrowing Costs

"In my opinion, the new agreement with the IMF should be a precautionary agreement, as it would give us credibility and lower costs," Croitoru told a central bank seminar Thursday.

Croitoru said the authorities haven't set the value of a new loan agreement with the IMF, nor have they established if the new accord would include funds from the European Union.

A precautionary agreement sets a loan value but disbursements are drawn only when needed.

The EU will contribute to any new financial agreement Romania might decide to sign with the International Monetary Fund in the future, a European Commission official said Wednesday.

Romanian President Traian Basescu said recently that the country plans to enter a new loan agreement with the International Monetary Fund in 2011.

Official discussions will be carried out during a joint mission of the IMF and EU in October.

In 2009, Romania and the IMF signed a EUR13 billion two-year standby agreement, part of a larger aid package which includes funds from the EU, the World Bank and other foreign lenders.

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