Prima pagină » English » Romania May Ask IMF For 2-Yr Stand-By Agreement – Sources

Romania May Ask IMF For 2-Yr Stand-By Agreement – Sources

Romania will send the International Monetary Fund, after concluding the negotiations in Bucharest, a letter of intent requiring a two-year stand-by agreement, with five years to reimburse the loan, official sources told MEDIAFAX.
Romania May Ask IMF For 2-Yr Stand-By Agreement - Sources
11 mart. 2009, 15:37, English

“A precautionary stand-by agreement is too weak, also as a signal. If negotiations are successfully concluded, Romania will ask, by the letter of intent sent to the IMF, for closing a stand-by agreement to last by end-2010 at least. There will be a two-year agreement,” the quoted sources said.

Precautionary stand-by arrangements do not focus on getting funds from the IMF, and the allotted sums are smaller than in the case of stand-by agreements.

Both the IMF experts and Romanian representatives agreed that the loan should be reimbursed in 2013, when Romania should get the largest part of EU funds, according to estimations.

The Romanian Government intends to borrow EUR19 billion from the European Commission and the International Monetary Fund, following an evaluation made by the Finance Ministry and the central bank, government sources told MEDIAFAX Tuesday.

An IMF mission is currently in Romania to hold discussions on a potential IMF program for Romania, regarding a multilateral financing package, to be supported by the European Union and the World Bank, among other international financial institutions.