Head of IMF in Romania talks over second agreement, higher unemployment and delay in adopting euro

Romania could need a second agreement with the International Monetary Fund (IMF) after the ongoing one expires. The IMF head, Dominique Strauss-Kahn, who was in Romania last week, discussed with President Traian Basescu the need for a second financing agreement between the country and the fund. Romania has so far drawn EUR 9 billion of the EUR 20 billion financing package which expires in 2011.

“When we ask for this assistance, we will most probably ask for a stand-by assistance package or a flexible credit line. We will see what solution needs to be adopted for Romania, because it is clear that as long as we are in an agreement with you, Romania is more credible,” Traian Basescu told the IMF head.

Strauss-Kahn stayed only a few hours in Romania. He gave a speech to students of the Bucharest Economics Academy (ASE) and one to members of Parliament. He met the president, Prime Minister Emil Boc, MPs and the Romanian Central Bank governor Mugur Isarescu.

Romania is on the right track but needs to continue its reforms, said the IMF head. He warned that national unemployment would continue to rise and that the country could miss its euro adoption target.

Corina Saceanu

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