IMF: Romania To Ask For New Waiver On Govt Arrears

Romania hasn’t met the end-September performance criteria in the sector of general government arrears and it will ask the International Monetary Fund for a new waiver of non-observance, IMF mission chief Jeffrey Franks said Friday.

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This will be the sixth waiver of non-observance in the government arrears sector since Romania signed a EUR13 billion loan agreement with the IMF in 2009.

The IMF is likely to ask Romanian government to pay at least part of its arrears to companies before disbursing a new installment of its loan in December, people familiar with the matter told MEDIAFAX earlier Friday.

End-June, Romanian government arrears stood at RON2 billion, double the half-year target agreed with the IMF.

The country must bring its government arrears down to RON480 million by year-end and eliminate them altogether by the end of the IMF program in 2011.

An IMF mission will be in Bucharest until November 1 to assess the country's progress under the loan agreement and decide on the disbursement of new aid, worth EUR870 million.

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