IMF mission starts talks on new stand-by deal with Romania

By bne IntelliNews July 18, 2013

An expert team of the IMF has already started talks with Romania on a new follow-up agreement after the previous one expired last month. The mission began with meetings at the headquarters of the finance ministry and the central bank for technical details.

The new agreement will most likely address the delays accumulated in the restructuring of state-controlled companies – along with the further measures aimed at enhancing the macroeconomic stability.

It remains unclear whether the EU would join the IMF in shaping a new two-year programme with Romania. So far, the EU accompanied the Fund's stand-by agreements with BoP support programmes for Romania.

Based on the rhetoric expressed by IMF's managing director Christine Lagarde in Bucharest earlier this week, the government and the central bank might be also encouraged, under the new funding deal, to take steps for stimulating domestic demand on both consumption but particularly on the investing side. The nature of such stimulus is still unclear, but the IMF official mentioned state support given to small enterprises and other sectors for getting access to bank financing. If successful, this would help both the banking system and the real sector.

Related Articles

EC to sue Bulgaria, Romania for failing to adopt copyright legislation

The European Commission said that will refer Bulgaria and Romania, along with Luxembourg and Spain, to the Court of Justice of the EU as they have failed to notify ... more

Kingfisher takes on Romanian DIY market leader Dedeman with Praktiker acquisition

Brico Depot Romania, owned by UK-based DIY and home improvement products retailer Kingfisher, has completed the acquisition of its peer Praktiker Romania, local media reported on December 4. The ... more

Romanian anti-corruption activists dismantle Christmas fair at protest site

Romanian anti-government protesters halted the construction of a Christmas fair in front of the government building on Bucharest’s Victory Square on December 2.  The site has constantly ... more

Dismiss