IMF board decides fate of Romania's loan on June 28th

The International Monetary Fund will evaluate Romania's economic performances as part of the ongoing stand-by agreement on its board meeting on June 28, according to the fund. The IMF board will decide whether Romania will get the fifth loan installment, pending on the implementation of the cost cutting measures the country has pledged to take. The state clerk salary and pensions cuts were among those measures. These cost cutting measures are expected to lead to a budget deficit of 6.8 percent of the GDP this year, higher than the previously agreed target of 5.9 percent. The fifth IMF loan installment, EUR 850 million, will go directly to the Romanian Central Bank (BNR), while the money from the European Commission will go into the Finance Ministry's budget. Romania will get EUR 20 billion from the IMF (EUR 12.9 billion), the European Commission (EUR 5 billion) and the World Bank (EUR 1 billion). So far, the country got EUR 9.3 billion from the IMF, EUR 2.5 billion from the EC and EUR 300 million from the World Bank.