Financiarul

The International Monetary Fund on Friday carried the Country Report on Romania drawn up on September 1, after the fact-finding mission headed by Jeffrey Franks who visited Bucharest over July 29-August 10. The country report stresses that the diminution of the economic activity was more drastic than estimated, therefore, the Bucharest Government required the derogation from the enforcement the criterion of performance on arrears and its change.

The gross domestic product shrank 7.6 percent, compared to the initial estimate of 2.5 percent, because of the diminution of consumption, affecting public the finance sector which was also hit by the reduction of revenues collected to the state budget and prompted the drastic shrinkage of public spending, reads the report.

The officials of the International Monetary Fund met with president Traian Basescu, with PM Emil Boc, with Finance Minister Gheorghe Pogea, with Governor of the National Bank of Romania, Mugur Isarescu, and with representatives of trade unions and business climate.

The stand-by agreement with the International Monetary Fund which applies for a period of 24 months stipulates that Romania will be allotted 12.95 billion euros in 8 tranches, from a support loan worth 19.95 billion euros, of which 5 billion euros earmarked by the European Commission, 1 billion euros by the World Bank and 1 billion euros by the European Bank for Reconstruction and Development and by the European Investment Bank.

Romania has so far been extended 6.57 billion euros by the International Monetary Fund, the second tranche standing at 1.85 billion euros.