Loading ...Commercial banks in Romania can borrow money on the foreign market at a lower rate by two percentage points, following the signing of the agreement with the International Monetary Fund (IMF), stated on Monday State secretary with the Ministry of Public Finance (MFP) Bogdan Dragoi.
According to MFP official, ahead of IMF negotiations start, the credit default swap – CDS derivative instruments, reflecting the country risk, stood at 7.5 percent above EURIBOR (euro interest rate on inter-banking market), at the negotiations moment climbed down to EURIBOR plus 6.4 percentage points, and following the agreement announcement it went down to EURIBOR plus 5.2 percentage points."
CDS five-year rate prior to negotiations was 750 basic points (7.5 percentage points) above EURIBOR, during negotiations 640 basic points above the EURIBOR and, after IMF official announcement, it dropped to 520 basic points above EURIBOR", said Bogdan Dragoi.
Foreign financial aid package to be granted to Romania amounts to some 20 billion euros, and it is spanned over 24 months.
Foreign financial aid package to be granted to Romania amounts to some 20 billion euros, and it is spanned over 24 months.
IMF is giving a loan of 12.9 billion euros , the European Union – five billion euros, the World Bank - 1-1.5 billion euros and up to one billion euros will be provided by some other financial institutions.
Loading ...
Comentează acest articol