Romanian Govt Ratified Stand-By Agreement With IMF Before Meeting Fund's Mission

The Romanian Government on Wednesday ratified the stand-by agreement with the International Monetary Fund before the meeting with the IMF mission to Bucharest, by a law draft that will be sent to the Parliament for adoption.

Governmental sources previously told MEDIAFAX that the IMF mission in Romania would meet Wednesday the central bank's governor Mugur Isarescu and later in the day the group of ministers appointed for negotiations with the institution.

Prime Minister Emil Boc could also take part in the second meeting, the quoted sources said.

The IMF representatives already had talks with the central bank and Finance Ministry representatives.

The government's team designated to negotiate with the IMF includes finance minister Gheorghe Pogea, economy minister Adriean Videanu, transports minister Radu Berceanu, deputy prime minister Dan Nica, SMEs minister Constantin Nita and labor minister Marian Sarbu. 

The talks will focus on the budget deficit, namely on hiking the deficit target for infrastructure investments and on tax exemption for the reinvested profit, Prime Minister Emil Boc said Monday.

An IMF mission led by Jeffrey Franks came to Bucharest on Tuesday for the first evaluation of the stand-by agreement approved by the financial institution in May. The evaluation is due to end on August 10.

Romania and the IMF agreed on a EUR12.95 billion two-year stand-by arrangement, as part of a EUR19.95 billion financial support package that also includes funds from the European Commission, the World Bank, and the European Bank for Reconstruction and Development.

Mediafax