The president is considering a new agreement with the IMF

President Traian Basescu said today, during the meeting with Jeffrey Franks, the head of the mission of the International Monetary Fund (IMF), that in October, they should analyze a new agreement with the IMF.

“I propose that during the visit in October, we should look at a future agreement between Romania and the IMF, to see if the correct solution is the extension of the current agreement or to have an agreement of the ‘precautionary’ type, this is my message to you,” said Basescu.

The president also said: “At the same time, we are striving to continue together structural reforms and the absorption of European funds. It is necessary to create the necessary fiscal space for the absorption of the funds,” said Basescu.   

Franks confirmed the talks, but said that are just discussions at this point. “We may start some preliminary discussions, but we haven’t decided if we will start negotiating now,” said Franks at a financial conference in Bucharest today. 

Franks replied that the key to the absorption of European funds is to eliminate barriers in the public sector. “We should also look at the social costs, we have a deficit of EUR 3.6 billion, which is dramatic,” said Basescu.

Read more about

Air Show in Bucharest on Saturday for Aviation Day: dozens of military aircraft to fly over Aviatorilor Square

read more

Romania is scheduled to receive about EUR 900 million as the next from the IMF, if it proves it paid overdue debts to private companies and approves changes in its pension system before the board meeting tentatively scheduled in late September.

The IMF loan of EUR 12.95 billion is a part of the support package of EUR 20 billion, with the EC, the WB and other international financial institutions.  

O.H., D.C.