World Bank To Join IMF, EU For Romania Follow-Up Deal

The World Bank is prepared to offer Romania technical and financial assistance for its planned follow-up deal with the International Monetary Fund and the European Commission, much like it did when the initial bailout package was signed two years ago, a World Bank official said Tuesday.

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Peter Harrold, Country Director for Central Europe and the Baltic Countries at the World Bank, said the new loan agreement will most likely be signed for two years, but the exact duration will be set after discussions with the authorities in Bucharest.

In May 2009, Romania and the IMF signed a EUR13 billion two-year standby loan, part of a larger EUR20 billion package that includes funds from the World Bank, the EU and other foreign lenders.

The Romanian authorities said recently the country would enter a follow-up agreement once the existing one expires in the coming months. The new arrangement is likely to take the shape of a precautionary deal.

According to Harrold, Romania's new deal with the World Bank will have similar terms as the first one, which amounted to EUR1 billion.

So far, the World Bank has disbursed EUR600 million to Romania, while the last installment, worth EUR400 million, will be included in the new agreement.

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