Romania continues to follow a good direction, in line with IMF program

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Romania continues on a good direction, within the program with the International Monetary Fund, and all performance criteria of the sixth revision of the agreement have been met, except Government arrears reduction, IMF Board Report 2012 informs referring to the sixth evaluation of the stand-by Agreement, published on Wednesday.

Despite all these, progress provided by the structural agenda, particularly privatization of state-held enterprises, remains slow. As priority actions to achieve this assessment, „The government has committed to launch public offering of shares in two public companies, and preparations are far advanced,” says the document.

The Fund’s Board believes that assumed fiscal policy and monetary commitments as well as the determined implementation of the structural reforms agenda are needed to secure the macro-economic stability and acceleration of growth.

The report stresses that fiscal discipline will be needed, especially in the context of upcoming parliamentary elections, to achieve the fiscal program targets and fiscal stability.

The International Monetary Fund mission will be in Bucharest, from November 6 to 14, to discuss with the Romanian authorities about recent economic developments.

The IMF Board approved, at the end of September, the sixth revision of the precautionary-type Agreement with Romania after which it made available a new tranche, in value of 430 million SDR (Special Drawing Rights), the equivalent to 519.2 million euros (663.1 million dollars). Following the release of the new tranche from the precautionary monitoring agreement, concluded with the IMF, resources available to Romania amount to SDR 2.64 billion (3.2 billion euros or 4.1 billion dollars). The total value of the agreement is 3.6 billion euros.

The agreement between Romania and the IMF began on March 31, 2011 and is a precautionary one, in value of SDR 3.1 billion (3.6 billion euros), representing approximately 300 percent of the share that Romania has in the Fund.

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