The first tranche of the loan, worth €5 billion, will be released on Wednesday. In order to receive these funds, Romania had to make a budget rectification on macroeconomic indicators agreed upon with IMF - 4.1 percent economic decline and budget deficit amounting to 4.6 percent of gross domestic product (GDP) - and BNR had to finalize a stress test for commercial banks. “The two preconditions were applied in accordance with the terms agreed upon with the IMF mission, which negotiated the agreement with the Romanian authorities,” IMF’s Regional Representative for Romania and Bulgaria, Tonny Lybek, told Business Standard.
Lucian Croitoru, Advisor to BNR’s Governor, told Business Standard that Romania will draw the first tranche of the loan as soon as it is made available by the IMF. The €12.9 bln will enter the BNR reserve and be used to support the balance of payments. “The loan agreement with IMF is aimed to support the balance of payments by ensuring a proper level of international resources, which allows carrying out international transactions without any difficulties,” Lybek said. At the end of each quarter, IMF experts will analyze the country’s evolution in relation to the measures Romania committed to in the letter of intent. IMF and the European Commission will come to Romania on July 10 for an assessment of Romania’s economy and, if revenues are lower than estimated, a new budget rectification will be made, according to Finance Ministry State Secretary Gheorghe Gherghina.
