IMF postponed the second loan tranche

IMF postponed the second loan tranche

IMG head in Romania, Jeffrey Franks, European Commission director Elena Flores and World Bank country director, Arntraud Hartmann, present the preliminary conclusions of the evaluation mission.

Related:

• EC: Romania's political instability could prelong economic crisis
• IMF: Risks rise in Romania. Structural measures may not be implemented

Jeffrey Franks (IMF):

• We’ve made very good progresses, from the last 10 days discussions with the Romanian authorities; now we can be in the position of analyzing the situation and free the money as soon as the political situation will be solved.

• Although we couldn’t finish the research, we’ll continue working on it and we are prepared to send missions to continue and finalize the analysis.

• Since 2009 was more difficult than we had anticipated, the effects will be seen in a higher deficit in 2010, unless other measures won’t be adopted. Without an additional action, budget deficiency will reach 9 % of GDP.

• At this moment, we foresee a better position, though the prognosis of budget deficit decrease by 8 %, comparative to 8,5%, from the previous estimations.

Read here what are the consequences of IMF decision to postpone the third tranche of Romania's external loan.