The International Monetary Fund (IMF) announced having extended by three months, to June 30, 2013, its loan to Romania under a stand-by arrangement (SBA).
The stand-by arrangement for 3.5 billion euros was initially approved in 2011. The Romanian authorities are treating the SBA as precautionary, thus they do not intend to draw on the available resources. „The extension, which was requested by the Romanian authorities, will provide them with time to implement the measures needed to complete the combined seventh and eight reviews under the SBA,” IMF reports in a press release.
„The extension will, in particular, offer an opportunity to reduce arrears of the central and local governments and to take measures to improve the governance of state-owned enterprises,” reads the IMF release.
The Executive Board of the International Monetary Fund (IMF) approved on March 15, 2013, on a lapse-of-time basis, a three-month extension of Romania’s Stand-By Arrangement (SBA) to June 30, 2013.