IMF lifts Romania credit line by US$661 mil.

Following an executive board review of Romania's economic performance, the IMF boosted the amount immediately available to Bucharest by 507 million euros (US$661 million) to 1.6 billion euros.

While Romanian authorities have not drawn on any of the money, the move boosts the country's backup in case the eurozone problems tighten its avenues for financing.

It also represents IMF approval of the reforms it has undertaken.

“Romania has made good progress under the Fund-supported program,” said David Lipton, the IMF's first deputy managing director and acting chair.

Lipton said that policy implementation has remained strong and all program targets were met.

“However, risks have risen considerably due to the financial turbulence in the euro area. Continued commitment to the economic reform agenda is crucial to help withstand current uncertainties.”

The IMF extended Romania a 24-month 3.6-billion-euro under a stand-by facility in March 2011, but restricts the amount immediately available to the government based on its performance in meeting Fund fiscal and reform guidelines.

In any case, the Fund said, “the authorities have indicated that they will continue treating the arrangement as precautionary and therefore do not intend to draw under it.”

Romania, a member of the European Union, is not part of the 17-nation eurozone but its economy has been seriously impacted by the eurozone sovereign debt crisis.

President Traian Basescu says that Romania aims to join the single-currency area in 2015.

Subscribe to The China Post and save 25%. Click here

PrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email