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

Hungarian branch of Bucharest listed Digi to buy Invitel Tavkozlesi in €140mn deal

Bucharest listed Digi Communications announced on July 21 that its Hungarian subsidiary, Digi Tavkozlesi es Szolgaltato, has signed an agreement to acquire Hungarian broadband and telephone provider ... more

Romanian media tycoon Voiculescu to be released on parole

A Romanian court ruled on July 18 that media tycoon and former politician Dan Voiculescu, who was sentenced to 10 years in prison in August 2014, should be released on parole after serving ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more