Romania ends arrangement with IMF on Friday with a bill of 11.9bn euros plus interest
Autor:
Razvan Voican
20.03.2011
The stand-by arrangement with the IMF whereby Romania took out the record-high 12.9 billion-euro loan two years ago, ends Friday March 25, when the board of the financial institution based in Washington will discuss the last quarterly review of the arrangement sealed in 2009.
The approval of Romania's request for the sealing of a new
stand-by arrangement is scheduled on the same day, another two-year
arrangement, but of a precautionary type, which means the 3.6
billion-euro amount discussed will be used only in case of
emergency.
In fact, Romania decided not to draw the last tranche of the 12.9 billion-euro loan, so the overall amount to be repaid to the IMF amounts to 11.9 billion euros plus over one billion euros in interests.
As the last couple of years' experience shows, both items on the agenda of the IMF board on March 25 will be checked without too much trouble, especially since Jeffrey Franks's technical team gave their green light a month ago.