Romania reaches 4 billion euro agreement with IMF
BUCHAREST, Romania (AP) — Romania has reached agreement with the International Monetary Fund and the European Union for a 4 billion euro ($5.3 billion) precautionary loan.
IMF mission chief to Romania Andrea Schaechter said Wednesday that the government had requested the 24-month standby agreement which it does not plan to draw on. It is shared equally between the IMF and EU, and will act as a backstop in case there’s any turbulence in financial markets. It would be Romania’s third deal with the IMF in five years.
In 2009, Romania secured a 20-billion euro bailout loan from the IMF, EU and the World Bank. The economy is forecast to grow 2 percent this year and 2.25 percent next year.
As part of the agreement, the government will cut health spending and privatize lossmaking companies.