IMF Completed Review of Romania’s Progress Under Second Bailout Agreement
IMF Completes Romanian Accord Review After Three-Month Extension
June 26, 2013Bloomberg - The International Monetary Fund completed its reviews of Romania’s progress under its second bailout agreement after delays in economic overhauls prompted the country to ask for a three-month extension.
The lender’s board of directors agreed to unlock the final approximately 520.7 million-euro ($677.4 million) tranche of the 3.6 billion-euro two-year accord, the IMF said in an e-mailed statement yesterday after a meeting in Washington. The IMF said Romanian authorities are “treating the arrangement as precautionary and do not intend to draw under it.”
“The economy has stabilized. Core inflation remains low, and the fiscal and current account balances are sustainable,” Nemat Shafik, an IMF deputy managing director, said in the statement. “However, growth is weak and downside risks exist. Structural reforms are critical to realizing Romania’s growth potential and creating jobs.”The eastern European country’s government, which has had two IMF-led deals since 2009, is seeking to start negotiations for a third agreement, pending approval from the European Commission, according to Prime Minister Victor Ponta.
