IMF Could Reschedule 5th Loan Installment To Romania – Official

The next installment of a EUR13 billion loan agreement signed last spring is conditioned by Romania’s ability to implement the promised measures, Franks told a news conference in Bucharest.

Franks didn’t rule out the possibility that the IMF will release the fifth and sixth installments simultaneously in the fall if the Romanian government fails to make good on its promises by the board’s meeting due end-June.

The next two installments are worth EUR850 million each and are scheduled for release in June and September, respectively.

The government has pledged to reduce public salaries by 25% starting with June 1, while pensions and unemployment benefits will be lowered by 15% each.

Romania’s loan agreement with the IMF is part of a larger EUR20 billion package that includes funds from the European Commission, the World Bank and other foreign lenders.

So far, the country has received around EUR9.2 billion from the IMF and EUR2.5 billion from the EU.

Joint teams from the IMF, the EU and the World Bank were in Bucharest until May 10 for the fourth review of Romania’s progress under the loan agreement.