Stiri	Stiri afaceri	Stiri companii	Evenimente de afaceri

IMF review mission arrives Wednesday in Romania

A new mission of the International Monetary Fund (IMF) is coming on Wednesday to Romania for the second review of the Stand-by precautionary agreement and for assessing the progress made as regards the commitments made by the Romanian authorities.

The mission will end on 1 August and the IMF experts, together with their European Commission (EC) and World Bank (WB) peers, will discuss the targets set for the first half of the year with representatives of the National Bank of Romania (BNR), the government, the business and political milieu, as well as with the social partners.IMF experts first visited Romania in relation with the new precautionary agreement between April 27 and May 9, during a joint mission of the IMF, EC and WB.

At the end of the previous month, John Lipsky, who at that time was serving as IMF Acting Managing Director and Acting Chair, said that 'Romania has made a strong start under the new arrangement and all program targets were met, underscoring the authorities' commitment to continued reform.'

According to the Technical Memorandum of Understanding between the two parties, the state-owned companies monitored under the Agreement with the IMF will lay off about 7,000 employees until end-September at the latest, so as to improve performance.

The Romanian authorities expect an economic growth of 1.5 pct in 2011 and 3.75 pct - 4 pct in 2012, on the background of solid exports and the gradual recovery of domestic demand. However, inflation exceeds the authorities' estimates. 'Inflation is higher than we would have expected it to be, because of the increase in food and energy prices. These factors, plus an additional required rise in administered prices, will keep inflation above 5 pct for the rest of the year, making the achievement of the National Bank's target for the end of 2011 unlikely,' reads the letter of intent agreed upon after the first IMF review mission.

Romania's precautionary Stand-By arrangement with the IMF began on March 31, 2011 and amounts to SDR 3.1 billion, or 3.6 billion euros respectively, representing approximately 300 pct of Romania's share with the IMF.

The new arrangement with the IMF spans 24 months and will run concomitantly with a new EUR 1.4 bln precautionary agreement with the EU, as well as with a EUR 0.4 bln loan agreement with the World Bank.The Stand-By Agreement between Romania and the IMF began on March 31, 2011 and is a preventive type, amounting to SDR 3.1 billion, EUR 3.6 billion respectively, representing approximately 300% of the share of Romania has IMF.

The IMF made available to Romania's two tranches under the new agreement, worth 67 million euros and 480 million of euros, respectively.

Sursa: http://www.actmedia.eu

Tags: agreement review romania mission bnr