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Romania, IMF In Talks For A 2 Years Follow-Up Agreement – Sources

Romania's Government and the International Monetary Fund are discussing the terms of a two-year follow agreement to a EUR13 billion loan program that expires in May, people familiar with the talks said.
Romania, IMF In Talks For A 2 Years Follow-Up Agreement - Sources
Oana Gavrila
27 ian. 2011, 13:25, English

„The Government is going to negotiate a two-year period for the new program, as suggested by the IMF, despite 2012 being an election year, which represents a significant political risk,” the sources told MEDIAFAX reporters.

In 2009, Romania and the IMF signed a two-year standby loan agreement, part of a larger EUR20 billion package that includes funds from the EU, the World Bank and other foreign lenders.

Romanian authorities said recently the follow-up arrangement will likely be a precautionary deal, but gave no details on how much they want to borrow.

Mihai Tanasescu, Romania’s representative to the IMF, said early January that the country could access up to three times its Special Drawing Rights (SDR) quota held at the fund, equal to approximately EUR3.6 billion-EUR3.7 billion.

Joint teams from the IMF and the European Commission will be in Bucharest until February 8 for the seventh and final review of the two-year agreement and discuss the terms for the new deal.