Friday, October 16, 2009

IMF: Romanian Government Collapse Won't Interrupt Aid Program

By Meena Thiruvengadam, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- The International Monetary Fund on Thursday said it does not expect the collapse of Romania's government to deter a $17.1 billion aid package it has promised to the struggling eastern European nation.

"IMF programs support sound economic policies of partner countries, not a particular government or political party," IMF Romanian mission chief Jeffrey Franks said.

The Fund has extended a two-year loan offer to Romania and already has disbursed nearly $10 billion in aid to the country.

Romania, however, has fallen into a political crisis after a no-confidence vote in its parliament earlier this week led to a collapse of its centrist minority government. The uncertainty in its political situation comes as the country also is battling a deep recession.

Romania has tapped its former IMF representative Lucian Croitoru to serve as its prime minister, a position that would allow him to run an interim government until the country holds a presidential election later this year.

The IMF plans to meet with Romanian officials to discuss the disbursement of additional loan dollars as soon as the country forms a new cabinet.

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