Romanian Government approves IMF and EC memorandum ratification on releasing third and fourth instalments

The Romanian Government approved the ratification on the intention letter and of the memorandum with the International Monetary Fund and the European Commission for Romania to receive the third and the fourth instalments of the international financing agreement. The two instalments amount to around 2.4 billion euros, Romanian Finance minister Sebastian Vladescu announced on Tuesday, February 23, 2010. According to him, the IMF money are due today and the EC money will arrive in March.

Vladescu said that the IMF and the EC agreement improves Romania’s position on foreign markets. „From a strictly technical point of view, the interest rates for pour finance are decreasing. At the same time, the sums that we attract from the market, receiving overseas money as well on long term, are lower, which enables resources for the private sector”, Vladescu claims.

Regarding the loan’s terms, Vladescu indicated that „there are terms that address absolutely necessary laws, in particular for budget improvement, the pensions system, spending control; there are the known laws, some of them have already been sent to the Parliament and are being discussed”, Vladescu siad.

The two instalments will go to the Romanian National Bank (BNR) and state Treasury accounts. Half of the money is meant to cover the budget deficit.