Romania to start talks on new stand-by deal with IMF in July – PM Ponta

By bne IntelliNews July 5, 2013

Romania will start negotiations for a new stand-by agreement with the IMF, PM Victor Ponta said as quoted by Adevarul daily.

The EC might, however, not join the Fund in a new follow-up programme with Romania, the daily informs quoting unofficial sources.

The Commission has accompanied both previous two-year agreements between the IMF and Romania. As we reported, the Fund’s managing director Christine Lagarde will visit Romania on July 15-16.

Ponta's statement comes after central bank officials advocated in favour of a new follow-up agreement with the IMF.

The Fund has just endorsed on June 26 the completion of the second two-year stand-by arrangement with a EUR 3.5bn support financing attached, which was, however, treated as precautionary by Romania.

The agreement was accompanied by a BoP programme of the EU backed by another EUR 1.4bn financing that was also not used by the government of Romania.

The 24-month agreement during 2011-2013 had a three-month exactly because of Romania’s constant delays in meeting its quarterly commitments – particularly in regards to reforms in state-controlled companies. The key reforms in most troubled state companies were actually not yet pursued and a new follow-up agreement would make sense in this respect.

 

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

Dismiss