Does the Government have to sell state-owned companies to repay IMF loan?

Next year will see the nearly 20 billion-euro record loan taken out by Romania from foreign financers mature, and the National Bank and the Finance Ministry are set to start repaying loan instalments, with one of the issues discussed being whether the Government will have to sell some of its assets in order to repay the money.

Recently, Grzegorz Konieczny, general manager of Franklin Templeton and portfolio manager of FP (Fondul Proprietatea), was quoted as saying by Reuters that the Government had to sell holdings in order to pay back the IMF programme. He said Fondul Proprietatea (Property Fund) expected the Government could raise nearly 1.5 euros selling shares in state-owned companies in the next couple of years.
So far, the authorities have only paid interest on the nearly 20 billion-euro record-high loan sealed with the IMF, the European Commission and the World Bank nearly two years ago.
The first principal payment will be made on August 6th 2012 and will amount to 546 million special drawing rights (SDR), i.e. over 600 million euros at the current SDR value.
"The repayment of the loan is done in instalments. There is no major pressure involved. Under no circumstances is the Government unable to repay the loan unless it sells holdings in state-held companies. The sale is a solution that can be considered. The Government's intention to sell stakes on the stock exchange has been previously announced. It is not unexpected. But I don't think the Government is forced to do this amid pressure to repay the loan," said analyst Aurelian Dochia.
On another note, as part of the new precautionary arrangement with the IMF, the state-run companies will be much better monitored, considering the high level of arrears, and the Fund believes the resources derived from privatising viable companies could provide cheaper financing of the budget deficit, sources close to the negotiations say.
On the other hand, while the arrangement with the IMF will continue in some form or another, the continuation of the agreement with foreign banks on maintaining exposure to Romania is not ironclad, and may be dropped, as parent banks maintain exposure voluntarily, sources close to the talks say