Romania eyes EUR 3.6 billion precautionary deal with IMF

The International Monetary Fund will make available for Romania EUR 3.6 billion in a new, precautionary deal that will be signed after the current stand-by agreement expires in April, according to Mediafax newswire, quoting people close to the talks. The funds will be used only in emergency situations, according to the source. The amount was put forward during discussions on the new agreement, and it is based on economic data currently available. However, the sum could be changed in the next months to match the economic indicators and Romania's financing needs. Romanian authorities intend to sign a one-year precautionary deal, as 2012 is an election year. The exact term of the new agreement will be set after the IMF's Board meeting on Friday, when the fund decides if releasing a new installment, worth around EUR 900 million, out of the current loan. In May 2009, Romania agreed with the IMF on a EUR 13 billion stand-by arrangement, part of a EUR 20 billion financial support that includes funds from the European Union, the World Bank and other international lenders. An IMF delegation is expected in Bucharest on January 25 for reviewing the current arrangement and talks on the new deal. Mediafax