Tuesday, January 11, 2011

Romania to sign new loan agreement with IMF

BUCHAREST, Romania (AP) — Romania's finance minister says the country is negotiating a precautionary loan agreement with the International Monetary Fund and the European Commission.

Gheorghe Ialomitianu said Monday this will allow Romania to use the money only if needed — like an overdraft facility — and to increase credibility on financial markets.

An IMF mission will visit Romania at the end of January, and media reports say the government could borrow about euro3.6 billion ($4.65 billion).

Romania already agreed to borrow euro20 billion ($25.81 billion) from the IMF, the European Union and the World Bank in 2009, when it's economy shrank 7.1 percent. Last week, the IMF board approved that loan's latest disbursement, of nearly euro900 million, after the country passed legislation required by the IM

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