Romanian Gov’t ready to approve memorandum with IMF on Tuesday
The Romanian Government on Tuesday convened an extraordinary session to approve the memorandum over the financial conditions for the second and the third tranches of the loan from the International Monetary Fund (IMF), Premier Emil Boc said in the beginning of the meeting.
He specified there was going to be approved at the meeting on Tuesday an Emergency Ordinance on the Stand-By Arrangement with the IMF, on the sidelines of the latest negotiations that took place in August-September, after one day since the Board of Directors of the international financial institution approved the letter of intent and the arrangement with Romania.
The Government was expected in 48 hours to answer if it was going to support the agreement and the letter of intent, with a positive decision to result in the second tranche of the loan being sent to the BNR (half) and to the State Treasury (the other half), the same as the third tranche to be released in December, the head of the Romanian Executive explained.
The money to enter the State Treasury will be used to finance the budget deficit, which increased from 4.6 up to 7.3 percent of the GDP, after the negotiations with the IMF and with the European Commission.
The Prime Minister also added that the approval by the IMF of the letter of intent represented a recognition of the fact that the Romanian Government observed all its pledges under the stand-by arrangement with the IMF and with the European partners.
The IMF Board of Directors on Monday completed the first assessment of the economic performances of Romanian in compliance with the financing arrangement concluded for 24 months under the Stand-By Arrangement (SBA) and approved the immediate transfer of 1.85 billion euros to Romania, with total payment to Romania reaching thus 6.57 billion euros, reads a release on the Web page of the international institution.
The arrangement with the IMF was concluded for 24 months, with the final amount the Fund is going to transfer 12.5 billion to Romania, in 8 tranches.