A solid macroeconomic policy and the continuation of structural reforms remain vital for the country’s economic recovery and growth in the long run, the press release signed by Jeffrey Franks, head of the IMF mission to Romania, and Joost Kuhlmann, head of the EC delegation, also reads.
The IMF and EC officials, currently in Bucharest, have suspended negotiations with the Romanian authorities and will continue with the technical discussions. Subsequently, they will present their preliminary conclusions and recommendations. The IMF and EC officials will return to Romania to resume official talks after a new government is in place.
Romania’s Government was overthrown following a no-confidence vote in Parliament on Friday. The motion passed 235 to 9. Romanian President Traian Basescu on Friday designated Victor Ponta, head of the Social Democratic Party (PSD), as Prime Minister.
Joint teams from the IMF, the EC and the World Bank arrived in Bucharest April 24 to assess the country’s progress under the loan agreement. 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 also includes EUR1.4 billion financing from the EU and a EUR400 million loan from the World Bank.