EC, Romania Sign MoU On EUR5B Financial Assistance

Romania and the European Commission signed the Memorandum of Understanding (MoU) on the medium-term loan, the Commission said Tuesday.

The MoU sets the terms for the release of the EU financial assistance to Romania, starting with a first instalment of EUR1.5 billion in July.

"The policy conditions include measures in the area of fiscal consolidation, fiscal governance, structural reforms as well as financial sector regulation and supervision," the Commission said.

The MoU was signed by Commissioner for Economic and Financial Affairs Joaquín Almunia, Romanian Prime Minister Emil Boc as well as the country’s finance minister Gheorghe Pogea and the central bank Governor Mugur Isarescu.

The loan will be disbursed in up to five instalments and is part of a EUR19.95 billion multilateral financial support package, backed by a EUR12.95 billion stand-by loan from the International Monetary Fund.