The Government wants to direct funds to EU-funded projects but this move depends on the conclusions of negotiations with IMF representatives, said the sources.
They highlighted the redistribution of funds to ministries will be based on how they carried out investments in the first half of the year, as well as on their need of finance. Money allotted to projects that are now overdue may be directed to other projects and ministries that made no investments will lose funds, added the sources.
The IMF allowed the Government to allot extra funds in the second half of 2011 to EU-funded projects, if Romania increases the European fund absorption rate.
On June 24, 2011, reimbursements paid by the European Commission to Romania for EU-funded projects amounted to EUR650 million, or about 3% of the EUR20 billion allotted for 2007-2013, according to data presented in June by Catalin Vatafu, adviser of Prime Minister Emil Boc.
Joint teams from the International Monetary Fund, the European Commission and the World Bank will visit Romania between July 20 and August 1 for the second review of a EUR5.4 billion precautionary agreement signed end March.
End-June, the IMF completed the first review and approved a EUR481 million disbursement.
Romania and its international partners signed a two-year precautionary agreement, successor to a EUR20 billion bailout package received during May 2009- March 2011.