IMF worried about latest political developments, tells Romania to walk the walk, not just talk the talk

The International Monetary Fund expressed concern over the latest political developments in Romania. Currently on a review mission to the country, Erik de Vrijer (in picture, middle), the new IMF mission chief for Romania voiced worries about the impact of the current political situation on the country's economy. He welcomed the intention of Romanian officials to keep pledges made to financial institutions and acknowledged the efforts made in recent years to recover from the financial crisis, achieve stable inflation and a stable budgetary situation.

Current turbulence makes it harder for the economy to work, which is not only mirrored in investors' trust and in the exchange rate, which depreciated, but also in the cost of financing the country's economy and eventually in the pace of growth, de Vrijer explained. He also underlined talking about these measures is not enough, taking action is also needed. A joint delegation from the International Monetary Fund, the European Commission and the World Bank is currently in Bucharest reviewing the existing loan for Romania, of some EUR 5 billion. The mission is set to end on August 13. The delegation will negotiate with the Government led by Victor Ponta and analyze several fiscal measures and the 2013 budget. A meeting with the country's interim president Crin Antonescu is also on the agenda. PM Ponta recently said Romania should continue its agreement with the IMF next year, with a new cautionary loan. Romania took the first loan from the IMF in 2007, when it signed a stand-by agreement of EUR 20 billion from the IMF, EC and World Bank. Last year, it signed the second agreement. The country recently paid the first tranche of the EUR 20 million loan, some EUR 670 million, which left Romania's Central Bank (BNR) coffers yesterday (August 7 ). editor@romania-insider.com photo source: presidency.ro