IMF Review Mission To Visit Romania Oct 28-Nov 9

"Successful completion of the second review will require a broad-based political commitment to approve a 2010 budget with a budget deficit no higher than 5.9 percent of GDP. Once agreement has been reached on fiscal and other macroeconomic policies essential to the success of the program, the IMF’s Executive Board will meet to consider the review, which involves a disbursement of SDR 1,409 million or about €1.5 billion,” the IMF mission chief for Romania, Jeffrey Franks, said in a statement.

Last week Romanian President Basescu said the IMF has decided to postpone the visit, initially scheduled for October 21, after the country’s minority government fell in a no-confidence vote. The IMF said then it did not anticipate an interruption in the stand-by arrangement with Romania or a change in policy as a result of the political developments.

The IMF visit will take place jointly with teams from the European Commission and the World Bank and a follow-up mission may be necessary to continue discussions after a new government has been formed, Franks said.

"During this visit, the mission will evaluate Romania’s recent economic performance and will discuss with authorities the economic objectives for the coming year, along with the policy measures and structural reforms needed to reach those objectives," he added.

Romania signed the funding deal with the IMF, the European Union and the World Bank in March to support its crisis-hit economy.

The IMF will make public its conclusions at the end of the visit.

($=0.6684 euro)