Romania Cuts Government Guarantees Cap To RON10B In 2012

05.25.2011 By Florentina Dragu

Romania may issue government guarantees in the limit of 10 billion lei (EUR2.45 billion) in 2012, down from a RON14 billion cap agreed with the International Monetary Fund for this year.

The figures are included in a government draft on public expenditure for 2012.

Early this year, the IMF has allowed the Romanian authorities to double the general guarantees cap to RON14 billion in 2011, from RON7.6 billion a year earlier.

Additionally, the ceiling may be adjusted upward by up to RON9.6 billion to help finance the Nabucco pipeline project. (EUR1=RON4.1233)