Romania shouldn’t sign a new agreement with the International Monetary Fund (IMF), because it would not send a good message, said Mugur Isarescu, the Governor of the Romanian Central Bank (BNR).

Isarescu believes that concluding the current standby agreement as scheduled in 2013, and not signing a new agreement to follow on, will send a positive message about the health of the Romanian economy. It would also free the country from what he describes as 'a more or less demanding teacher'. The Central Bank Governor said a new agreement at the EU level, such as the Fiscal Stability Pact, could be an alternative.

Romania’s current agreement with the IMF will be completed in 2013. The standby arrangement, worth EUR 3.56 billion, was approved and came into force in  March 2011.

An IMF mission led by Jeffrey Franks, the chief mission for Romania, arrived in Bucharest on January 25 this year for the fourth review of the standby arrangement with Romania. The IMF visit took place together with the European Commission and World Bank.

Jeffrey Franks gave the Romanian authorities a thumbs up during their fourth review. He also said that the Fund will disburse an additional EUR 505 million for the country. “Progress has been good, all quantitative targets were met and we agreed on the necessary policies,” said Franks.

The next program evaluation mission is planned for late April.

Irina Popescu, irina.popescu@romania-insider.com