Romania’s 10th agreement with the IMF expires on Saturday

0 27

Romania’s agreement with the IMF, blocked in June last year, expires on Saturday, September 26, and a clear direction regarding the development of relations between the two sides is expected to emerge in the future.
The review of the current agreement with the international lenders, amounting to EUR 4 billion, is blocked since June 2014 due to the lack of an agreement on the government’s fiscal plans.
In early September, Finance Minister Eugen Teodorovici said that Romania intends to start talks with international lenders about a new agreement as of this year, so that it enters into force in 2016. In his view, the agreement is necessary for Romania to protect its finances against market shocks.
In turn, Prime Minister Victor Ponta said on several occasions, after amending the Tax Code in Parliament, that an agreement with the IMF, WB and EC would have positive effects without involving the drawing of funds.
On the other hand, the IMF resident representative in Romania and Bulgaria, Guillermo Tolosa, said recently that, for a new agreement, Romania must request this from the international financial institution and then the IMF will analyze the type of agreement that can be concluded.
Tolosa said that the main macro-economic targets agreed upon by the agreement have been met, but unpredictability has prevented the IMF to draw a clear conclusion about the stability of the macro-economic indicators.
The current stand-by agreement is the 10th signed by Romania with the IMF in the past 23 years and the third agreement sought from the IMF since the economic crisis in 2009. The arrangement was concluded in September 2013 for 24 months and is to expire on September 26, 2015.

- Advertisement -

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More