Romania negotiates funding with both IMF and EU

The authorities have ongoing talks for a package of external funding with both representatives of the International Monetary Fund (IMF) and the European Commission. The Finance Ministry and the National Bank of Romania, directly involved in the talks, are not disclosing the amount they want to obtain, but sources close to the government and the President say the package is worth €10 billion.

"We are negotiating with the IMF, we have a direct connection, a dialog. Romania's need for financing from the Fund has not so far been clearly established. I cannot say what figures we are talking about, because these could change. Calculations are ongoing," central bank's Chief Economist, Valentin Lazea, said.

He was questioned about information that a Romanian delegation is currently in Washington to negotiate a loan with the IMF, published by NewsIn agency.

Lazea declined to say whether the information, obtained by the news agency from financial market sources, is correct.

BNR "Deputy Governor Cristian Popa is in Washington today [Ed. n. Monday] to discuss the loan for Romania with the IMF. [Finance Ministry State Secretary] Bogdan Dragoi is also part of the delegation," sources said.

Representatives of the IMF office in Bucharest declined to comment on the information, but indicated that "discretion is required on this issue." BNR officials confirmed Popa's visit to Washington, but declined to provide details on its purpose.

Liberal-Democratic First Vice President Theodor Stolojan confirmed that a Romanian delegation is currently in Washington to negotiate an IMF loan.

BNR Governor Mugur Isarescu said last week that Romania could contract several loans from the European Union (EU), the IMF, and other institutions, such as the World Bank or the European Bank for Reconstruction and Development (EBRD). These loans would be conditioned one on another and would be paid back within several years.

Business Standard