UPDATE: The IMF might pay out the next tranche in January. The IMF officials stated today that the IMF decision will depend on the government’s commitment to fulfill the conditions discussed during the sixth review of the EUR13 billion stand-by loan. An important condition refers to the fact that the government has to finalize the 2011 budget and to get the go-ahead of the pension reform.
The International Monetary Fund (IMF) regional representative for Romania and Bulgaria, Tonny Lybek will hold a joint press conference with the IMF, European Commission (EC) and World Bank (WB) in less than an hour.
According to IMF information, on this occasion, Jeffrey Franks, IMF Mission chief for Romania, will present the conclusions of the sixth review mission under the IMF Stand-by arrangement with Romania.
We remind you that Romanian authorities’ negotiations with the International Monetary Fund came to a deadlock mainly due to problems raised by a Government emergency ordinance regarding consumer loans, and the IMF mission might prolong its assessment visit to Romania, according to news agencies.
Both the Romanian Government and ruling coalition parties disagree with amending the emergency decree adopted in June, which transposes an EU directive into the local legislation. The new act applies retroactively to existing loans and the banks denounced the measure as abusive.
IMF mission chief Jeffrey Franks said recently Romania must bring its consumer loan legislation in line with European standards to receive new aid the IMF. Also, The Fund’s representatives also rejected certain economic measures proposed by ruling democrat liberals for 2011.