IMF Team Visits Romania To Discuss 2010 Budget

"During December 14 to 16, a small technical team from the IMF and the European Commission will visit Bucharest. They will continue the technical work on the 2010 budget with experts of the Ministry of Public Finance," IMF resident representative for Romania and Bulgaria Tonny Lybek said in a statement.

Romania targets a 5.9% budget deficit next year, under the stand-by deal with the IMF. The government has to finalise the budget draft for 2010, which should be then approved by parliament.

The visit "will also serve as preparation for the review mission to complete the second review of Romania’s Stand-By Arrangement (SBA)," he added.

In November, the IMF delayed the release of the third tranche under the 20 billion euro aid deal with the country, until the political situation in Romania stabilises. The third tranche was worth 1.5 billion euro and was due in December. The fourth tranche from the IMF has been set at 820 million euro.

Political uncertainty has been high in Romania since the fall of the country's minority government in October. The European Commission has also delayed the disbursement of its second tranche of aid to Romania, worth one billion euro, for the same reason.

"The dates of the review mission have not yet been determined. The review mission could return in January, once a new cabinet has been formed and has elaborated its program," Lybek said.

The IMF has so far disbursed around 6.6 billion euro to Romania in the first two tranches of the loan facility. 

Under the stand-by agreement, signed in May, the IMF pledged to lend Romania 12.95 billion euro, the World Bank will extend a loan of 1.0 to 1.5 billion euro and the rest will come from other international organisations, including the European Bank for Reconstruction and Development.

($=0.6818 euro)