The Romanian government asked the fund for a two-month extension of the current deal to have time to finalize reforms at state-run companies such as CFR Marfa, Oltchim (OLT.RO) or Transgaz (TGN.RO), Prime Minister Victor Ponta said Friday.
“If we end successfully the current agreement, we immediately start discussions on a new precautionary loan arrangement,” Ponta said.
According to people close to the talks, another review mission should arrive to Bucharest in July, when a follow-up agreement would be discussed. The new arrangement and the final review of the current agreement should be approved by the fund’s Board in September, according to the desired schedule.
Romania has yet to accomplish several terms agreed with the IMF, such as privatizations of major energy and transport companies.
Romania and the IMF signed a EUR3.6 billion precautionary loan agreement in April 2011, successor to a larger EUR20 billion international bailout package received during 2009-2011.
The agreement is supplemented by a EUR1.4 billion loan from the EU and another EUR1 billion from the World Bank. So far, the authorities in Bucharest have not drawn any funds.
The Eastern European country said recently that it plans to secure a new loan from its foreign creditors, but didn’t specify how much it hopes to obtain.