The stand-by arrangement was scheduled to expire on March 30, IMF said.
“The extension, which was requested by the Romanian authorities, will provide them with time to implement the measures needed to complete the combined seventh and eight reviews under the (arrangement),” the statement reads.
“The extension will, in particular, offer an opportunity to reduce arrears of the central and local governments and to take measures to improve the governance of state-owned enterprises.”
The loan was approved by the fund’s board on March 25, 2011 in the amount of 3.1 billion special drawing rights. The deal is supplemented by a EUR1.4 billion loan from the EU and another EUR1 billion from the World Bank.
The IMF’s board has completed six reviews, most recently in September 2012.
The authorities in Bucharest are treating the loan as precautionary and they have not drawn any funds so far.