EC and Romania sign Memorandum of Understanding on EUR 5 bln

The Memorandum of Understanding (MoU) sets the terms for the release of the EU financial assistance to Romania, starting with a first installment of EUR 1.5 bln expected next month, the European Commission informed on Tuesday.

The policy conditions include measures in the area of fiscal consolidation, fiscal governance, structural reforms as well as financial sector regulation and supervision. The MoU was signed by Commissioner Joaquín Almunia, Romanian Prime Minister Emil Boc as well as the country's finance minister and Central Bank Governor, Mugur Isarescu.

The EU financial assistance, agreed by EU finance ministers early May, is designed to withstand short-term liquidity pressures and help restore investor confidence by facilitating the implementation of a policy reform package, which aims to ensure an orderly adjustment of external and domestic imbalances.

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