“Romania continues to make good progress under the precautionary program. All performance criteria and indicative targets were met except for the central and local government arrears,” said David Lipton, IMF First Deputy Managing Director.
However, the economic outlook remains challenging due both to external and domestic developments, Lipton said.
“While progress is being made towards liberalizing energy prices, it will also be important to step up the reform of state-owned enterprises,” he added.
The international institution also approved a waiver for the nonobservance of a performance criterion regarding government and social security arrears, as well as the modification of the criterion pertaining to the net foreign assets of the central bank.
In April 2011, Romania and the IMF signed a two-year precautionary loan agreement, successor to a EUR20 billion bailout package received during 2009-2011. The new deal is supported by a EUR1.4 billion precautionary loan from the European Union and a EUR400 million credit line from the World Bank.
So far, the IMF approved total financing to Romania worth around EUR3.2 billion under the new arrangement, but the authorities in Bucharest have not drawn any funds.