Romania's representative to the International Monetary Fund (IMF) Mihai Tanasescu has suggested that the country could move to a permanent credit line with the financial institution, of the type currently agreed with Poland, according to reports in the Romanian media.

Tanasescu said that new standby agreement of the type currently in place would not be a good move, suggesting instead that after years of 'good behavior,' Romania could negotiate a higher level deal, like other countries in Europe that enjoy permanent credit lines with the IMF.

“Romania can now, after implementing the current agreement, move to a higher stage and have a partnership with the IMF, based on credit lines,” said Tanasescu. The IMF representative said that Romania was capable of financing itself, but a future deal would provide a useful safety net in the event of sudden or unforeseen financial shocks. He also explained that such an agreement would involve a higher level of cooperation and six monthly, rather than the current three monthly visits by IMF delegations.

The IMF delegation is in Romania at the moment to review the EUR 5 billion joint IMF, EU, World Banks standby agreement in place at present. The visit was delayed due to the referendum to impeach Traian Basescu, who is back in office after the result was declared invalid due to low voter turnout. Both the PM Victor Ponta and the Finance Minister have suggested that a new precautionary agreement could be sought, after the current deal expires this year.

Liam Lever, liam@romania-insider.com

(photo source: IMF)