BUCHAREST (Romania), Оctober 23 (SeeNews) – A European Union mission will visit Bucharest from October 28 to November 9 to assess whether Romania has met the conditions for receiving one billion euro ($1.5 billion) in balance-of-payments support, the European Commission said on Friday.
To qualify for receiving the aid, Romania needs to draft its 2010 budget with a deficit not exceeding 5.9% of the projected gross domestic product (GDP) and to agree on a programme of fiscal, financial and structural adjustment, the EU executive said in a statement. Romania must meet these requirements in order to receive EU funds worth one billion euro, or the second tranche of the five-billion euro in medium-term financial assistance pledged by the EU to support the country’s economy.
The EU mission's visit will take place jointly with teams from the International Monetary Fund (IMF) and the World Bank and a follow-up mission may be necessary to continue discussions after a new government has been formed.
The IMF said on Thursday its mission will visit Bucharest from October 28 to November 9 for the second review of the stand-by funding arrangement, on which the disbursement of about 1.5 billion euro hinges.
In Late March, Romania reached an agreement with the IMF, the EU and the World Bank and other international organisations on a 20 billion euro loan package to focus on external and fiscal imbalances and on supporting the financial sector. Under the standby arrangement, the IMF will lend Romania 12.95 billion euro and 5.0 billion euro will come from the European Union. The World Bank will extend a loan of 1.0 to 1.5 billion euro. The rest will come from other international organisations, including the European Bank for Reconstruction and Development.
($=0.6646 euro)