The International Monetary Fund will submit the new precautionary deal for Romania for approval in its board meeting at the end of March, when it will also talk about the seventh review of the current stand-by agreement with the country, according to Jeffrey Franks, head of the IMF delegation to Romania.

The IMF has agreed to offer Romania EUR 3.6 billion in assistance, while the European Commission loan will reach EUR 1.4 billion. The new IMF loan will include performance criteria on arrears, as the country still records major problems in this respect, according to Franks.

Romania has had a EUR 20 billion financing agreement with the IMF, the EC and the World Bank. Romanian president Traian Basescu has recently announced the country will not need to draw on the last tranche from the IMF, some EUR 1 billion, and will only use the last loan disbursement from the EC, as the country has already weathered the storm.

editor@romania-insider.com