Romania to send official letter to IMF for current loan extension, new agreement

Romania's Government and the country's National Central Bank (BNR) decided to send an official letter to the International Monetary Fund (IMF) asking for the three-month extension of the existing loan agreement and for a new loan. The Government made the decision in its Wednesday meeting (March 6 ).

Earlier this year, the Government asked the IMF to discuss the stand-by agreement evaluation in its Board in May, so that the country has time to fulfill some preconditions, such as pledged but delayed privations and the budget. A new IMF mission would then be scheduled to arrive in Romania in July. Romania is currently in an EUR 5 billion stand-by loan agreement with the IMF and the European Union, which can be used as a safety net, in case of necessity. The new loan agreement was signed in 2011, after the previous EUR 20 billion deal with the IMF, EU ended. editor@romania-insider.com