IMF: A year from now, Romania will no longer need a new accord

Most probably Romania will no longer sign a new stand-by accord with IMF as of next year, according to Guillermo Tolosa, the IMF representative for Romania, writes wall-street.ro.

“Our expectation and I think their perspective too (of the government- e.n.) is that as of next summer Romania will be on its own and will no longer need these stand-by accords,” was the answer made by Tolosa to a question coming from foreign investors present at a meeting with Romanian and foreign investors organized this week by Franklin Templeton, the administrator of Property Fund.

The biggest danger, according to the IMF representative, is that Romania will not implement all the reforms it needs in due time.

“The only risk is a not very rapid implementation of reforms which we have already discussed. It is a risk for Romania of not reaching its potential. Otherwise I do not expect major problems in years to come. The Ukrainian crisis is not a major risk for Romania. On the contrary, I heard talks about investors who have reconsidered their stands in Russia and reoriented towards East European countries, Romania included,” Guillermo Tolosa concluded.

Tolosa’s comments echo Liviu Voinea’s from last month. The delegate minister for the Budget said in may that the current agreement Romania has struck with the international Monetary Fund and the European Commission will surely be the last one it ever needs.

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“After 2015 we will no longer have a deal. This will surely be the last agreement with IMF and the European Commission. We had a deal for EUR 20 million in 2009. The money was taken. Another deal in 2011 for EUR 5 million, the money wasn’t taken and it was a preemptive deal. Another agreement in 2013, for EUR 4 billion – IMF and the European Commission – the money will not be taken again, but it is a stability agreement, it ensures an anchor“, according to Voinea.

Earlier in the month, the International Monetary Fund has postponed its review of Romania’s stand by agreement until November, when the government should complete a draft of next year’s budget.