IMF approves in principle agreement with Romania, prime-minister says
The International Monetary Fund (IMF) okayed in principle the accord with Romania, so the government will approve on April 11 an emergency ordinance on the budget revision and the readjustment of some financial measures, premier Emil Boc declared today.
IMF recommended the local authorities to send the emergency ordinance adopted by the government to be translated and checked before May 4, so the Fund can transfer the first part of the loan.
Romania inked an accord for a 20 billion euro financing package at the end of March. It will get about 13 billion euros from IMF and 7 billion euros from the European Commission, the World Bank and other European lenders to restart the engines behind the economy and cover holes until the end of 2010.
The interest paid by Romania will be 3.5 percent per year, considering the current market conditions. Thus, the two-year credit will be paid back by 2015 the latest, according to the agreement.
The loan is aimed at restoring faith in the economy, propping up the exchange rate, helping with the deficits and with the lending resumption and supporting small and medium-sized companies through banks.