Consequences of IMF decision to postone 3rd tranche

Consequences of IMF decision to postone 3rd tranche

The Romanian state risks to be out of liquid money by the end if the year, in the context of IMF postponing the third tranche of the external loan.

Related:

• IMF postponed the second loan tranche

More exactly, to be out of resources for the current spending, such as: the payment of salaries and pensions, unemployment budget supplementation or the reimbursement of some loans in the last part of the year.

As an alternative, the Romanian state will resort to other financing sources. Since an external market loan would be very expensive and impossible to obtain, the Ministry of Public Finances will continue to get finance from the internal market.

In the following period national currency may by submitted to depreciation pressures, taking into account the poor fundaments of the Romanian economy, but also to the pressures coming from the political environment.