Romania to pay EUR 300 million in IMF loan interest in 2011, loan repayment to start in 2012

Romania will pay the International Monetary Fund interest worth EUR 300 million for the loan installments transferred this year. Thus, interest paid this year is similar to the amount paid last year. The first tranche is set for February 1. Repayment of the actual loan is set to start with the transfer of some EUR 600 million on August 6, 2012. A mission of the International Monetary Fund is scheduled to visit Bucharest, between January 25 and February 8, for the seventh review of the EUR 13 billion agreement with Romania, the fund said Wednesday. Following the review, the IMF may disburse the last tranche of the stand-by loan, worth some EUR1 billion. The IMF team will be joined by experts of the European Commission and the World Bank. The review mission will also start negotiations for a follow-up agreement, said Tonny Lybek, the IMF regional resident representative in Romania and Bulgaria. Recently, the IMF board approved the sixth review and released a EUR 900 million tranche to Romania. In May 2009, Romania secured a EUR 20 billion financial package from the IMF, the EU, the World Bank and other international lenders. After the current arrangement expires in May, the Romanian authorities plan to enter new, precautionary deals with the IMF and the EU. Mediafax