The reshuffled Boc Cabinet is getting ready to beginnegotiations over a new loan with the IMF next month, which shouldensure rollover of the instalments of the almost 13 billion-eurocurrent arrangement inclusively, which expires next spring.
In 2011 Romania will have to finance an at least 6 billion-eurobudget deficit if it manages to bring it down to 4.4% of GDP. Itwill have to pay 280 million euros to the IMF and in 2012 when thepayment of capital instalments is due to begin, the bill will go upto 1.8 billion euros.
The Finance Ministry in turn will have a large volume ofshort-term debt to roll over that it took on this year and in 2009.Next year's public governmental debt service includes capitalinstalments worth about 11.3 billion euros and 2 billion euros ininterests.
"Romania's Government has expressed interest in a newarrangement but it is a bit early because there are several monthsleft of the current agreement and as it draws to a close we willdiscuss with the Government," said Jeffrey Franks, head of the IMFmission in Romania, who attended the events related to NationalBank of Romania's 130th anniversary. He added preliminary talkswould be held in October.
Franks met with Premier Emil Boc on Friday, who reassured himthat the change of finance minister would not affect the politicaldecision to go on with the agreement. Still, political instabilityshowed in the abrupt depreciation of the RON on Friday, with theexchange rate going up to 4.29 RON/EUR.
The Fund's team is due back for a new review in October, atwhich time talks for the new loan based on next year's budget draftwill begin.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
