Romania’s PM Confirms IMF Agrees To EUR1B Hike Of Public Guarantee Cap In 2010

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On Tuesday, Finance Minister Sebastian Vladescu told MEDIAFAX that the International Monetary Fund has allowed Romania to increase the ceiling on general government guarantees by EUR1 billion in 2010.

In September last year, the IMF agreed to increase the ceiling on public guarantees to RON7.7 billion in 2009 and to RON8.6 billion in 2010, from RON6 billion initially allowed.

However, the IMF insisted that the increase in guarantees be devoted exclusively to financing the counterpart payments of investment projects financed by the EU or other multilateral institutions.

Teams of the IMF, the World Bank and the European Commission arrived in Bucharest January 20 to review the Romania's performance under a EUR20 billion bailout loan, in view of disbursing new aid tranches totaling EUR3.3 billion.

A mission from the IMF, alongside representatives of the EU and the World Bank, arrived last week in Bucharest to review Romania's progress under the arrangement.

On Wednesday, the IMF mission concluded its evaluation of the country's progress under the agreement, so that the institution is expected to disburse another EUR2.3 billion to Romania mid-February, pending a board approval.