Romania applied for a precautionary program and must decide if it wishes to proceed with the program which was agreed over the summer, Simon O’Connor, spokesperson of the EU Commissioner for Economic and Monetary Affairs, said in a press briefing.
“Whichever choice Romania makes, it is essential that the country take forward the implementation of the recommendations issued to it by the Council in July, which include fiscal measures to ensure the achievement of the agreed budgetary targets, as well as the wide-ranging structural reforms to improve Romania’s administrative capacity and lift growth potential,” he said.
Regarding the program, O’Connor said “it is for Romania to take the decision and we will await that decision.”
Romanian President Traian Basescu on Monday declined to sign Romania’s memorandum of understanding with the IMF, saying he disapproves of a EUR0.07 excise duty on fuels. He will meet a delegation headed by Prime Minister Victor Ponta later Tuesday aiming to settle the dispute.
The Executive Board of the IMF will likely postpone until March next year a meeting to discuss the country’s progress under a EUR2 billion loan program.
The IMF’s executive board in September approved a new EUR1.98 billion two-year precautionary credit line for Romania, the third financial package the eastern European country has received in the last four years.
Romania will also receive EUR2 billion from the European Union under the new program, while EUR1 billion remains available under a World Bank policy loan.