Romanian President: IMF Follow-Up Deal To Enable Continued Reforms

The President said Romania has achieved fiscal and financial stability, which must now be consolidated. Economic indicators point to a technical recovery from recession, he said, while warning that authorities must remain cautious. According to preliminary data, the gross domestic product grew by 0.4-0.6% in the first three months of 2011, and by 1.1-1.3% compared to the first quarter of 2010. The economy is expected to grow by 1.5% in 2011 compared to 2010, and by 3.5% next year.

Basescu also said the talks with the IMF delegations have confirmed that the Romanian banking system is well-capitalized with a solvency of 14.7%.

The major objective for 2011 is optimizing state-owned companies, said the President.

In March, Romania and its international partners signed a two-year precautionary agreement, successor to a EUR20 billion bailout package received during May 2009- March 2011. Under the follow-up deal, the IMF will disburse EUR3.5 billion to Romania, while the European Union and the World Bank will contribute EUR1.4 billion and EUR400 million, respectively.

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