Florian Libocor, BRD: Romania should go through with the IMF agreement

Romania should go through with the International Monetary Fund agreement, even there are voices saying that Romania could give up the other instalments from the foreign loan, BRD economist chief Florian Libocor.

He mentioned that this is a proof that „we are serious”. „There are voices saying that we could give up the other instalments from the IMF agreement, which are not that consistent. I believe it would be beneficial to go through with the agreement because it would be for the second time when we do it”, BRD chief economist declared.

He added that „this would be good for the CV, because it would mean that we are serious.” So far, the IMF paid Romania 9.32 million euros out of 12.95 million euros financial package.

The man to suggest Romania could make a switch from a stand-by agreement to a precautionary agreement with the IMF was the Romanian Finance minister himself, Sebastian Vladescu. He stated that the Romanian economy was recovering in a consistent manner.

Asked whether summer 2010 might bring a precautionary agreement with the IMF, Vladescu replied: „It is to early to say whether we will change the agreement after the next evaluation. We hope to be able to switch to a precautionary agreement, because this would mean that the global economy is recovering and that the Romanian economy has recovered.”

A „precautionary stand-by” agreement is different from a stand-by agreement in that it doesn’t need to use all the money available through the contract, unless there is an emergency situation.