Romania's Government and the country's National Central Bank (BNR) decided to send an official letter to the International Monetary Fund (IMF) asking for the three-month extension of the existing loan agreement and for a new loan. The Government made the decision in its Wednesday meeting (March 6 ).

Earlier this year, the Government asked the IMF to discuss the stand-by agreement evaluation in its Board in May, so that the country has time to fulfill some preconditions, such as pledged but delayed privations and the budget. A new IMF mission would then be scheduled to arrive in Romania in July.

Romania is currently in an EUR 5 billion stand-by loan agreement with the IMF and the European Union, which can be used as a safety net, in case of necessity. The new loan agreement was signed in 2011, after the previous EUR 20 billion deal with the IMF, EU ended.

editor@romania-insider.com