Speaking in an interview for PRO TV, Basescu said he is in favor of Romania’s signing a new loan agreement. Asked whether a new accord would bring new austerity measures, he said Romania is no longer facing austerity.
According to Basescu, the fact that the Government is not raising salaries and pensions does not mean Romania is going through an austerity period. The president said the country is only much more careful with its budget funds spending.
He added he is not “so pessimistic about the evolution of Romania’s economy,” considering the perspective of a good farming year and the creation of new jobs through state aid targeting direct investments in the country’s economy.
Romania and the IMF have signed a two-year EUR3.6 billion loan agreement in 2011, successor to a larger EUR13 billion deal secured in 2009. The program was initially due for completion in April this year, but the government has requested a three-month extension to meet the IMF requirements.
To ensure the successful completion of the IMF program, the government promised to gradually eliminate the general government arrears by the end of 2013.
A positive review of Romania’s program could open the way for a new agreement with the international institution, whereas a negative assessment would mean that the country’s loan program would expire de facto.