He said a possible suspension of the agreement would have negative consequences regarding costs, volatility levels and contagion shocks in the region.
“Risks would be higher and interest rates would increase,” Voinea said.
The minister’s comments came after the Romanian Academic Society presented a report arguing that the Romanian economy would fare better without international aid, considering that the loan agreements signed so far have only stalled reforms and cushioned market pressure.
“Interest rates would go up and we won’t have access to funds,” Voinea said about a possible interruption of the loan agreement.
He said Romania’s costs with interests would increase this year alone to 1.91% of the gross domestic product, from 1.57% of GDP currently.
Calculated at an estimated GDP of EUR140 billion, Romania would pay at least EUR460 million in additional interests in 2013.
“The agreement with the IMF and the EU should continue,” Voinea said.
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 deal is supplemented by a EUR1.4 billion loan from the EU and another EUR1 billion from the World Bank.
In January this year, the authorities in Bucharest requested a two-month extension of the IMF agreement in order to complete a series of delayed reforms under the program.
The eastern European country also announced its intention to secure a new loan from its foreign creditors once the existing one ends, but didn’t specify how much it hopes to obtain.