Romania will not draw the last installment of its loan from the International Monetary Fund, of EUR 1 billion, and will use only the disbursement from the European Union, Romanian president Traian Basescu said on Sunday evening.

“In out discussions yesterday, we realized Romania's and IMF's evaluations coincide and the first expressions we could use would be that the two-year stand-by agreement with the two institutions ended in success,” said Basescu.

“After the finalized evaluations, I can say there are conditions for an economic increase. […] We are outside the economic risk area,” the Romanian president further said.

The country will not use the last installment from the Fund, but will get the one from the EU which is needed to cover the budget deficit. Basescu has also announced Romania's new agreement with the IMF, a two-year cautionary agreement which will give the country a EUR 5 million loan.

editor@romania-insider.com