IMF mission expected in Romania this week

A decision regarding the signing of a stand-by agreement between Romania and the International Monetary Fund (IMF) is to be made this week by Romanian authorities, whose representatives present in Washington last week had the first talks with the IMF regarding the foreign loan. According to officials of the coalition, an IMF mission is expected to come to Romania this week to continue talks regarding the criteria imposed by the Fund for granting the loan.

"Such meetings will keep taking place, until the two parties reach a common denominator. The letter of intent will be the final action taken by the Romanian authorities in this matter," the First Vice President of the Democratic Liberal Party (PD-L), Theodor Stolojon, told Business Standard. The value of the loan which Romania is to obtain from the IMF ranges from €4-10 billion.

Romanian officials announced that the country will obtain a package of loans, from several international financial institutions, such as the European Commission (EC), the IMF, the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the World Bank (WB). Adrian Vasilescu, Advisor to the Governor of the National Bank of Romania (BNR), Mugur Isarescu, said last week that the value of the loan package will certainly exceed the need for financing. President Traian Basescu is to present today his message regarding the opportunity of contracting a foreign loan to Parliament.

"It will up to Parliament, up to the Romanians, whether we put on a safety belt or attempt to make due with our own resources," Basescu said last week in Warsaw. Former Minister of Economy, Varujan Vosganian, said that the President is only trying to pass the responsibility to the Parliament, by way of his speech, aware as he is of the political costs involved in austerity measures imposed by a possible loan.

Business Standard