Sunday, March 27, 2011

AP: IMF approves new Romanian loan agreement

A Romanian official says the International Monetary Fund board has approved the country's request for a new loan agreement.

Mihai Tanasescu, Romania's IMF representative said Friday the board has also approved the last evaluation of the existing loan agreement, which ends this spring, the national news agency Agerpres reports.

In 2009, Romania took a two-year euro20 billion ($28 billion) loan from the IMF, the EU and the World Bank, as its economy shrank by 7.1 percent. Romania imposed harsh austerity measures under the agreement.

The new accord will be precautionary, allowing Romania to access euro3.6 billion ($5.1 billion) from the IMF and euro1.4 billion ($2 billion) from the EU only in emergency situations.

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