(Updated: adds information from the European Commission and economic forecasts in the last paragraphs)

The International Monetary Fund was content with the results of discussions in Bucharest, as part of the review mission which should end today, according to the head of the mission, Jeffrey Franks.

Romania has stayed within the agreed parameters and no harsh changes in economical policies were required, said Franks. Romania will receive the EUR 914 million loan disbursement, Franks has also said.

UPDATE: The EUR 914 million disbursement will be unlocked once Romania will fulfill all its duties, among which paying out the country's debt. Jeffrey Franks went on to say the current measures adopted by the Government, if kept in 2011, will lead to Romania achieving the budget deficit target.

The European Commission has also said Romania has covered all the conditions and the criteria for receiving the next loan installments.

UPDATE 2:

The European Commission services concluded that the conditions for the third disbursement of the EU Balance of Payments assistance programme (EUR 1.2 bn) were met. The ambitious fiscal consolidation measures agreed with the authorities in May and June were implemented as planned.

The mission concluded that these measures appeared sufficient to reach the agreed budget deficit targets of 6.8 and 4.4 percent of GDP (in cash terms) in 2010 and 2011, respectively (7.3 and 4.9 percent of GDP in ESA terms). Romania remains committed to reduce its deficit below 3 percent of GDP in 2012.

Continued weakness in domestic demand, developments in the region, and the recent floods will probably delay the economic recovery. Real GDP is expected to decline by 1.9 percent in 2010. Positive growth is expected for 2011 and beyond. Inflation will increase temporarily due to the increase in the main VAT rate that became effective in July. Inflation is expected to decline to around 3 percent in the course of 2011, according to the European Commission.