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.

 

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