IMF Defers Review Mission To After New Govt Is Formed – Romanian President

The Fund, which granted Romania a EUR12.95 billion loan under a two-year standby agreement, was expected to send a mission to review the country’s progress in the next weeks.

Romania’s government collapsed on Tuesday following a no-confidence vote in parliament, throwing the country into a political crisis.

On Thursday, Basescu designated Lucian Croitoru, an advisor to central bank’s governor, to replace Emil Boc as the new prime minister.

Basescu said Croitoru would have to form a new Cabinet as soon as possible, or „the consequences will be extremely serious for Romania.”

However, Romania will benefit from a $300 million loan from the World Bank in due time, Basescu mentioned.

„We will receive the $300 million disbursement from the World Bank next week. This tranche is not endangered. However, Romania must cash in two other disbursements by the end of the year: one from the IMF, worth EUR1.5 billion, half of which will be used to finance the budget deficit, and the other worth EUR1 billion that will come from the EU and has the same destination,” Basescu said.