An IMF mission expected in Romania this week to tackle financing program, assess the economy

Publish date: 10-03-2009
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A mission of the International Monetary Fund (IMF) will arrive in Bucharest on March 11 to investigate for two weeks the economy and discuss a possible financing program for the country, according to the economic institution.

The delegation headed by Jeffrey Franks will tackle with Romanian authorities a program suitable for the country, part of a multilateral financing package including the European Union and World Bank.

Earlier today deputy premier Dan Nica said an IMF delegation is to arrive in Romania this week only to carry an assessment of the economy, not grant a loan.

The Prime Minister Emil Boc admitted last week the government is in talks with the European Commission about a potential financial aid. If it takes a similar step with the IMF, the government will officially speak about it, Boc said.

"We are worried about the lending slowdown in Romania," Nica said, adding the Cabinet is looking into ways to help banks resume crediting. In the past weeks talks focused on taking an external financing to prop up the economy.

Romania's president Traian Basescu addressed the Parliament today pleading in favor of an external loan to insure payments to the budget and protect the country from a rapid deterioration of the economy, in the current economic downturn context.

Romania is faced with serious issues such as the current account deficit and the large debt of the private sector of 24 billion euros which are on everybody's lips, the president said.
The European Union has in store 30 billion euros for member countries this year and in 2010, but the money is inaccessible without a partnership with the IMF as the European Commission lacks mechanisms to control how the money is being spent, Basescu stressed.


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