The IMF places at Romania’s disposal new EUR 480mln stand-by installment

The management board of the International Monetary Fund (IMF) approved yesterday the third evaluation of the precautionary stand-by agreement.

The fund will place at Romania’s disposal a new installment, the fourth, in value of EUR 480 million.

Until the moment, the funds placed at Romania’s disposal for emergency summed up EUR 1.5 billion.

In the last letter of intention to the IMF, the government agreed that the list of companies whose loses should be included in the budget deficit next year will be extended from 10 to 27 companies.

Even though Romania made good progress, the risks it is exposed to have considerably increased due to financial turbulence in the euro zone, according to David Lipton, deputy GM of the IMF.

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The authorities are ‘on schedule’ to reach 2011 fiscal targets. However, authorities need to make efforts to improve the absorption of EU funds, to push forward the reform of state companies and reduce arrears, he recommended.

Otilia Haraga