Romania has direct access to 4.9 billion euros from IMF, following approval of letter of intent from Gov’t

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Signing of the agreement with the International Monetary Fund (IMF) brings Romania immediate direct access to 4.37 billion euros SDR (special drawing rights), approx. 4.9 billion euros or 6.6 billion dollars, with the remaining to be accessible in tranches, after the quarterly evaluation, reads a release on the IMF Web page.

The IMF deputy managing director John Lipsky praised the Romanian authorities for ‘asking for assistance in due time, so that to be able to correct the significant foreign imbalances and vulnerabilities in the latest years of economic boom, which left the country highly exposed to the international financial turmoil and to the volatility of the exchange rate.’

Moreover, the excessive public spending in the latest years led to an important fiscal deficit, which in the current conditions of tighter credit condition, is destabilizing. With the current economic crisis affecting Romania more and more, a rebalancing of the economy is inevitable, the IMF official said.

Romania concluded a two-year agreement with the IMF for 12.95 million euros, with the total foreign financing package, from the Fund, European Union, World Bank and the European Bank for Reconstruction and Development to reach 19.95 million euros.

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