BNR governor: I expect the IMF instalment to face delays

Romanian Central Bank (BNR) governor Mugur Isarescu declared on Friday that he was expecting the next IMF instalment from the stand-by loan to face delays. This item of information was also confirmed by sources close to the IMF delegation and Romanian officials, quoted by Romanian press agencies NewsIn and Mediafax. According to them, the decision regarding the instalment will be taken in January next year, after a new evaluation mission.

„Things seem clear now and I expect for the next instalment to face delays”, the BNR governor said.

„The December instalment will be postponed. Probably in the beginning January another delegation will come to sign with the new government, and around January 20, the IMF board will approve for the following instalment. This means the money will reach us one month and a half later, if everything goes well”, one of the sources said.

Most of the targets the agreement fixed for September 30 were met by Romania, the sources added. According to these sources, the problems do not only address the budget, but also al the measures regarding the next year’s budget set-up, which either entail staff reductions in the public sector or tax increases.

„The IMF understands that during an electoral campaign none of the parties will want to take responsibility for such measures. The schedule is fixed, but the instalment’s approval will be postponed for a month tops”, the quoted sources said.

The IMF evaluation chief of mission in Bucharest Jeffrey Franks declared on Wednesday that Romania fulfilled almost all technical conditions featured in the loan stand-by agreement for September, safe for one maybe. According to some sources, Franks referred to the money return issue. One of the IMF requirements is adopting the unique income scheme, the law for pensions and the law for fiscal responsibility.

The IMF, European Commission and World Bank representatives will hold a press conference on Friday to present the first conclusions of their evaluation.