The reshuffled Boc Cabinet is getting ready to begin negotiations over a new loan with the IMF next month, which should ensure rollover of the instalments of the almost 13 billion-euro current arrangement inclusively, which expires next spring.
In 2011 Romania will have to finance an at least 6 billion-euro budget deficit if it manages to bring it down to 4.4% of GDP. It will have to pay 280 million euros to the IMF and in 2012 when the payment of capital instalments is due to begin, the bill will go up to 1.8 billion euros.
The Finance Ministry in turn will have a large volume of short-term debt to roll over that it took on this year and in 2009. Next year's public governmental debt service includes capital instalments worth about 11.3 billion euros and 2 billion euros in interests.
"Romania's Government has expressed interest in a new arrangement but it is a bit early because there are several months left of the current agreement and as it draws to a close we will discuss with the Government," said Jeffrey Franks, head of the IMF mission in Romania, who attended the events related to National Bank of Romania's 130th anniversary. He added preliminary talks would be held in October.
Franks met with Premier Emil Boc on Friday, who reassured him that the change of finance minister would not affect the political decision to go on with the agreement. Still, political instability showed in the abrupt depreciation of the RON on Friday, with the exchange rate going up to 4.29 RON/EUR.
The Fund's team is due back for a new review in October, at which time talks for the new loan based on next year's budget draft will begin.
The reshuffled Boc Cabinet is getting ready to begin negotiations over a new loan with the IMF next month, which should ensure rollover of the instalments of the almost 13 billion-euro current arrangement inclusively, whi
