A new agreement with the International Monetary Fund (IMF) would give more credibility to Romania’s economic policy, said Central Bank governor Mugur Isarescu. The agreement, however, shouldn’t be focused on the balance of payments, but on the issues which are still unresolved, such as structural reforms.

A new deal with the IMF would probably help Romania in terms of borrowing at better costs from international markets. It would also stimulate the reform processes, Isarescu added, reports local Mediafax.

However, this needs to be decided politically, especially in the context of next year’s parliamentary elections.

Finance Minister Eugen Teodorovici said earlier this week that the Government would start negotiations with the IMF for a new deal by the end of this year. However, social democrat leader Liviu Dragnea said that the Government needed to come up with a good motivation to present to all political parties before going after another IMF deal.

editor@romania-insider.com