Ascultă Radio România Actualitaţi Live

Romania to Sign a New Precautionary Agreement

The Bucharest authorities have agreed on a new precautionary agreement with the IMF and the European Commission after the successful completion of a similar one this June.

Romania to Sign a New Precautionary Agreement
Pfoto: Archive.

Articol de Radio România Internaţional, 04 August 2013, 14:26

Romania has agreed on the terms of a new precautionary agreement with the international financial institutions.

The new agreement is worth 4 billion euros and will cover a period of two years. The money will be granted in equal shares by the IMF and the European Commission and will only be used in extraordinary situations, as Prime Minister Victor Ponta explained:

“We believe, and so do our partners, that Romania will not need to use any of the money granted under the new agreement. On the contrary, we will continue to pay the loan we took last time. It is simply a way to prove that Romania’s credibility has improved, but we will not use this money. This money reserve is always used in exceptional cases - and that’s not only Romania’s case - to cover the budget deficit for short periods of time. Romania doesn’t need to resort to this reserve anymore.”

According to PM Ponta the terms of the agreement will be presented to Parliament in September.

The head of Government has stated that the privatization of other state companies is not stipulated in the agreement.

The head of the IMF mission in Bucharest, Andrea Schaechter has recommended Romania to use the new financing programme as a tool to speed up reforms and strengthen economic stability and has pointed to the main sectors with potential for development in the upcoming period.

Talking about the new agreement, Andrea Schaechter has said that just like with the previous programmes, the energy and transport sectors continue to be essential. Romania abounds in resources but investment in infrastructure in these sectors is insufficient. However, solutions can be found, such as a deeper involvement of the private sector, at first with small share packages. This would render the two sectors more transparent and eventually more efficient.

On the other hand, Andrea Schaechter has pointed out that the new arrangement with Romania includes provisions to cut arrears and avoid growing debts.

She has also explained that the amounts the state owes to the private sector need to be paid to avoid blockages in the economy.

The small and medium sized companies are the most affected, because of their lack of access to finances, in spite of the loan programmes for the SMEs guaranteed by the state.

Andrea Schaechter has underlined that problems in this field need to be identified and solved and that the Fiscal Administration Agency has to work closely with the SMEs and agree on redundancies and payment rescheduling in order to help them pay their contribution to the state budget.

Carrying on the health system reform is another priority of the new economic programme agreed on with the international lenders.

The new precautionary agreement is to be submitted to the IMF board for approval this autumn.

More news on RRI.

“Open Doors at Cotroceni Palace” continues
News in English 15 Iunie 2025, 20:27

“Open Doors at Cotroceni Palace” continues

The Presidential Administration continues to organize the “Open Doors at Cotroceni Palace” event, following the...

“Open Doors at Cotroceni Palace” continues
The new prime minister could be nominated next week
News in English 14 Iunie 2025, 13:51

The new prime minister could be nominated next week

The new prime minister could be nominated next week, when it is possible that an agreement will be reached on political...

The new prime minister could be nominated next week
Without a credible plan to reduce the budget deficit Romania will be penalized
News in English 14 Iunie 2025, 13:49

Without a credible plan to reduce the budget deficit Romania will be penalized

Financial markets will penalize Romania if the authorities do not quickly present a solid and credible plan to reduce the...

Without a credible plan to reduce the budget deficit Romania will be penalized
Saber Guardian 2025 military exercise
News in English 13 Iunie 2025, 17:23

Saber Guardian 2025 military exercise

The Saber Guardian 2025 military exercise continues in Romania. Approximately 10.000 military personnel from NATO member...

Saber Guardian 2025 military exercise
The average net salary in Romania was 5.647 lei in April
News in English 13 Iunie 2025, 17:22

The average net salary in Romania was 5.647 lei in April

The average net salary in Romania was 5.647 lei in April, down 44 lei from the previous month, according to the National...

The average net salary in Romania was 5.647 lei in April
Next year, the Romanian Water Administration will have a budget of almost one billion euros
News in English 12 Iunie 2025, 20:38

Next year, the Romanian Water Administration will have a budget of almost one billion euros

The budget of the Romanian National Water Administration approved on Thursday at the government meeting for next year is over...

Next year, the Romanian Water Administration will have a budget of almost one billion euros
2024 was “a bad year for democracy”
News in English 12 Iunie 2025, 20:37

2024 was “a bad year for democracy”

2024 was a bad year for democracy, according to a report by the NGO Coalition for Citizens. Election campaigns were dominated...

2024 was “a bad year for democracy”
President Dan: Spain makes a consistent and concrete contribution to strengthening NATO's eastern flank
News in English 10 Iunie 2025, 18:25

President Dan: Spain makes a consistent and concrete contribution to strengthening NATO's eastern flank

President Nicusor Dan says that this is an extremely challenging period in terms of Euro-Atlantic security and emphasizes...

President Dan: Spain makes a consistent and concrete contribution to strengthening NATO's eastern flank