Romania To Receive Next IMF Loan Tranche On July 1 Or 2 – Finance Min

"It is already decided. The IMF receives the documents today. We will receive the tranche on July 1 or 2. The board will meet on June 30 or July 1 at the latest," Vladescu told Realitatea TV.

"The figures agreed tonight with the IMF will cover the difference in deficit between 9.1% and 6.8%. Right now we have an agreement concerning the measures to be taken; the documents are on their way to Washington," Vladescu said.

The minister said he believes the monetary and capital markets will react positively to the Fund's disbursement of the fifth tranche of the loan, worth EUR850 million.

The International Monetary Fund board meeting to analyze the stand-by agreement with Romania, initially scheduled for June 28, has been postponed as the IMF is evaluating the impact of the Constitutional Court's ruling on the Government's program of public spending cuts.

The Constitutional Court Friday ruled the pension cuts unconstitutional and sent the law back to Parliament for revision. Other austerity measures in the law package were deemed as "disputable", but the court didn't see fit they should be reexamined in Parliament.

The Government decided Saturday to increase VAT from 19% to 24%.

Last year, the IMF and Romania agreed on a EUR12.95 billion stand-by loan, part of a EUR19.95 billion financial support package, which includes funds from the European Union and the World Bank.

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