Franks: Romania, IMF Agree On Economic Policies For Follow-Up Deal

05.09.2011 By Florentina Dragu

Romania and the International Monetary Fund have reached an agreement on the economic and fiscal policies to be pursued during a EUR5 billion two-year precautionary program, IMF mission chief Jeffrey Franks said Monday.

"We've reached an agreement regarding the first review mission. All quantitative criteria have been met and we've also agreed on the policies to be applied next," Franks told a news conference in Bucharest.

He said the IMF board will most likely review Romania's letter of intent to the loan arrangement at the end of June.

Romania and the IMF signed a EUR5 billion loan agreement, successor to a larger EUR20 billion bailout package that ended in April this year.

Under the new deal, the IMF will disburse Romania EUR3.5 billion, while the EU and the World Bank contribute with EUR1.4 billion and EUR400 million, respectively.

However, Romania will access the funds only in case of economic distress.