Romania, IMF Loan Agreement Could Be Switched To Precautionary – Fin Min

„It’s too soon to say whether the arrangement will be modified after the next assessment. We hope we will be able to switch to a precautionary agreement, because it will mean that the global economy is growing and that the Romanian economy has recovered,” Vladescu told MEDIAFAX reporters.

Last year, Romania signed a EUR13 billion two-year standby agreement with the IMF, part of a EUR20 billion loan package including funds from the European Commission, the World Bank and other international lenders.

Romania has received so far roughly EUR7 billion in IMF money and is scheduled to get two new tranches worth EUR2.3 billion by end February.

By switching to a precautionary standby agreement, Romania won’t have to draw additional money from the IMF loan except for emergencies. However, the new form of the agreement will not modify the terms of the initial loan arrangement.

A new IMF mission will arrive in Romania late April or early May to review the country’s progress under the agreement. The eastern European country could receive a new loan tranche in mid-June.