IMF Board considers on September 24 the report on Romania, to approve the next instalment of the loan

If the report will be approved, Romania will receive the sixth instalment, worth over 900 million euro of the 12.9 billion euro from the IMF. Romania received so far 10.7 billion euro from the IMF, 2.5 billion euro from the EU and 300 million euro from the World Bank. Romania's government approved on Wednesday the document in which, according to declarations of the Finance ministry, Ialomiatianu there are two conditions: one related to the state's debts to the private sector - 1.95 billion lei and another one related to the approval of the pensions law.

Romanian economy expected to shrink 2% this year

According to estimations, Romania's economy will shrink two percent in 2010 and will increase between 1.5 and 2 percent in 2011, reads the additional letter of intent to the International Monetary Fund (IMF) the government approved on Thursday. 'The economic recovery will be delayed due to persisting low domestic demand, the unfavorable regional context and the recent floods,' reads the document. Inflation is expected to temporarily rise in the last two quarters of the year under the effect of the VAT increase, hitting 7-8 percent by the end of 2010, before reverting in 2011 to the variation band targeted by the National Bank of Romania. The current account deficit is further projected at 5 percent of the gross domestic product (GDP).

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