IMF approves EUR 1.98bn precautionary stand-by arrangement for Romania

By bne IntelliNews September 30, 2013

IMF’s Executive Board has endorsed a two-year SDR 1.75bn [EUR 1.98bn] stand-by arrangement with Romania, the Fund said on its website. 

Romania’s authorities also applied for another EUR 2bn support from the EU and plan to treat both programmes as precautionary – meaning that the credit lines would be used only if necessary.

Both programmes are aimed at protecting the economy against external shocks and helping it return to GDP levels reached before the crisis by catalysing growth-enhancing reforms.

This is the third two-year consecutive programme ran by Romania with the IMF and the EU, which focuses on consolidating the reforms achieved under the previous two programmes as well as on promoting further reforms particularly in the state-owned enterprises and transportation and energy sectors.

This third programme will put Romania on the path to exiting from the IMF’s support, the Fund said – implying that this is going to be the last stand-by loan needed by the country.

Related Articles

Romania’s Banca Transilvania becomes shareholder in Moldova’s Victoriabank

Romania’s Banca Transilvania (BT) has become a shareholder of Victoriabank, the third largest bank in the Republic of Moldova, with a total participation of over 66% alongside the European Bank for ... more

Romania signs €900mn contract for Piranha armoured vehicles

Romania’s government on January 12 signed a €900mn contract to buy 227 Piranha 8x8 armoured fighting vehicles (AFVs) from US producer General Dynamic, partly assembled at Uzina Mecanica Bucuresti ... more

Damen to lose out as Romanian PM says Mangalia shipyard will be nationalised

The Romanian government is committed to taking over a 51% stake in Mangalia shipyards from Daewoo and revive the yard by producing military ships, Prime Minister Mihai Tudose said on January 10 in an ... more