Romania will continue to rely on funding from the International Monetary Fund (IMF), as the country's leaders have decided to ink another agreement with the IMF for a year or two, according to president Traian Basescu (in picture). The president discussed the issue with Prime Minister Victor Ponta and with the Central Bank Governor Mugur Isarescu and together decided that Romania continues to need assistance over the medium term. The possible value of the loan was not announced.

“I think this is the right moment to analyze the existing agreement and look at some elements of the future agreement. As I have discussed with the PM and the BNR governor, we decided to have another agreement with the IMF, for a year or two,” said Basescu. He met earlier today (November 8 ) the delegation of IMF and the other international lenders that helped Romania weather the financial storm, who are currently in Bucharest for another review of the current stand-by arrangement, signed last year.

Romania needs help from the IMF, the European Commission and the World Bank to ensure economic growth over the medium term. Even though Romania is currently stable with a low level of public debt and with a budget deficit below 3 percent of the GDP,  economic growth is not yet guaranteed.

Romania's first loan from the IMF, of some EUR 12.9 billion, part of a wider EUR 20 billion package, was signed in 2009.

In March 2011, the IMF approved a 24 month standby arrangement with Romania for approximately EUR 3.7 billion.

editor@romania-insider.com

(photo source: presidency.ro)