EXCLUSIVE: Romania Ctrl Bank To Report EUR2B Drop In Reserves Under IMF Deal

„Under the program, we anticipate increases in gross international reserves in 2011 and 2012. These will provide improved confidence in the economy and allow for greater reserve coverage of short-term foreign liabilities,” noted the letter, which was obtained by MEDIAFAX.

However, any reserve losses above EUR2 billion incurred over a period of 30 days during the agreement will prompt immediate consultations with the IMF, the document noted.

Romania, which is about to end a EUR20 billion two-year agreement with the IMF, the European Union and other foreign lenders, recently announced plans to sign a follow-up deal, worth EUR5 billion, with its international partners.

At the same time, the authorities in Bucharest have decided not to draw the final installment from the IMF, citing sufficiently high reserves at the central bank.

End-January, the central bank reported foreign currency reserves of EUR32.68 billion.

Joint teams from the IMF and the EU visited Romania between January 25 and February 8 to review the country’s progress under the standing agreement and discuss the terms of the follow-up deal.