Romania could be in a safe financial position at the end of the current agreement with the International Monetary Fund (IMF) and might not need another agreement, as previously suggested by the country's leaders. This time, the governor of the National Bank himself, Mugur Isarescu said the positive ending of the current IMF deal in the first half of this year would leave enough room for work in 2013. “We still have to finish this agreement. And its end and the discussions probably in January this year, with some positive ending in sight, I think offers a good enough base for the whole 2013,” said Isarescu, when asked about a new deal with the IMF. He explained his vague comments by saying it is unusual to discuss it before the negotiations are over.

An IMF mission led by Erik de Vrijer will be in Bucharest between January 15 and 29 for the 7th and 8th evaluations of the stand-by agreement. The 7th, which was supposed to happen after November last year, was delayed to leave room for the general elections.

Romania currently has a EUR 5 billion agreement with the IMF and the European Union, but will use the money only if needed. The current agreement was signed in spring 2011, after the previous deal, from 2009, ended. The current deal should end in March – April this year.

A previous statement from PM Victor Ponta pointed to his plan to ink new preventative agreement with the IMF and the EU.

editor@romania-insider.com

(photo source: bnro.ro)