22 March 2009

General agreement between Romania and IMF : Romania will become (as a safeguard in case of difficulties) cheap loans of above € 20 Bn, mainly from the IMF, but also from UE, World Bank and EBRD. The condition is a lower public deficit, on which government has been working for several month already, and to decrease the public sector salaries share on gross domestic product. No request for tax increase, and investments in infrastructure are advised.
Most of lent money will be kept by central bank, to ensure swift repayment for private sector short term loans in foreign currencies reaching deadlines, which will allow lower interest rates and a much lower risk of currency exit from Romania.
The IMF also took an agreement with foreign banks holding subsidiaries in Romania so that newly injected money will stay in local economy and will fully boost local growth.