Ascultă Radio România Actualitaţi Live

Letter of Intent to the IMF

On Tuesday the Prime Minister of Romania Victor Ponta presented to Parliament the main elements of a new agreement with the European Commission, the IMF and the World Bank.

Letter of Intent to the IMF
Prime Minister Victor Pont.

Articol de Radio România Internaţional, 18 Septembrie 2013, 14:39

Upon presenting Romania’s new loan agreement with the IMF, the European Commission and the World Bank to the two chambers of Parliament on Tuesday, Prime Minister Victor Ponta explained that the document entails no obligation or intention to increase taxes.

He asked for the MPs’ support for the Government’s efforts to close the deal, which would enable Romania to continue to borrow money from international markets at low costs.

The agreement concerns a precautionary loan worth 4 billion euros.

According to the Prime Minister, it is intended on the one hand to ensure support in the case of a new Eurozone or world financial crisis, and on the other hand to encourage reforms and contribute to the economic stability of the country. Victor Ponta:

“I believe that after the 2009 crisis, Romania is now recovering, in fiscal and budgetary terms, as our international partners have acknowledged, and I would like to be able to say, in two years’ time, that Romania needs no further agreements with the international financial institutions.”

In exchange for the loan, the international lenders have asked for reforms in the healthcare system and the privatization of state-owned companies.

In the Parliament meeting, the representatives of the ruling Social Liberal Union appreciated the terms of the agreement, and said it was not a loan per se, but rather an umbrella agreement confirming Romania’s progress.

The IMF has forecast a 2% increase in Romania’s GDP this year and a 2.25% growth next year.

The deal is also backed by the Democratic Union of Ethnic Hungarians in Romania, in opposition, who argue that the precautionary loan is necessary and beneficial for the Romanian economy, because it ensures increased credibility while at the same time not burdening the taxpayers.

The main opposition party, the Liberal Democratic Party, believes on the other hand that it’s time Romania moved on from a safety-net agreement to a development agreement, able to stimulate the economy and create new jobs.

The Liberal-Democrat Gheorghe Ialomitianu, a former finance minister, says the deal is a mere advertising move for the Government, proving its lack of responsibility.

The agreement will be valid for two years. The letter of intent was sent to the IMF on September 12 and will be analyzed by the board of the institution this autumn.

More news on RRI.

Bucharest citizens will be able to apply for an electronic ID card
News in English 23 Aprilie 2025, 22:46

Bucharest citizens will be able to apply for an electronic ID card

Bucharest residents can start applying for an electronic ID card from Thursday. Appointments can only be made online, and the...

Bucharest citizens will be able to apply for an electronic ID card
IMF cuts its growth estimates for the Romanian economy
News in English 22 Aprilie 2025, 23:15

IMF cuts its growth estimates for the Romanian economy

The International Monetary Fund has lowered its growth forecast for the Romanian economy this year to 1.6%, down from 3.3% in...

IMF cuts its growth estimates for the Romanian economy
EC: TikTok has made extra preparations to better manage the May elections
News in English 22 Aprilie 2025, 23:14

EC: TikTok has made extra preparations to better manage the May elections

The European Commission is continuing to work with the online platform TikTok to ensure that there will be no breaches of EU...

EC: TikTok has made extra preparations to better manage the May elections
The fire in Arges "could not have started by natural causes"
News in English 21 Aprilie 2025, 19:01

The fire in Arges "could not have started by natural causes"

The IGAV's two Black Hawk helicopters withdrew last night after dropping 240 tons of water, a vital aid because the...

The fire in Arges "could not have started by natural causes"
Financing guide under the "Rabla for tractors" program published
News in English 21 Aprilie 2025, 19:00

Financing guide under the "Rabla for tractors" program published

This week, another necessary step of the "Rabla for tractors" program was completed - the publication of the...

Financing guide under the "Rabla for tractors" program published
A new multinational exercise on Romanian territory
News in English 17 Aprilie 2025, 21:30

A new multinational exercise on Romanian territory

Around 4.000 soldiers, with over 900 technical means, from 10 allied countries will take part next month in a new...

A new multinational exercise on Romanian territory
The National Audiovisual Council has removed several videos posted online
News in English 17 Aprilie 2025, 21:29

The National Audiovisual Council has removed several videos posted online

The National Audiovisual Council has removed in recent days a number of illegal online materials from TikTok, Facebook and X....

The National Audiovisual Council has removed several videos posted online
"Romania is and will remain a pillar of transatlantic cohesion on NATO's Eastern flank"
News in English 16 Aprilie 2025, 18:45

"Romania is and will remain a pillar of transatlantic cohesion on NATO's Eastern flank"

After the talks with the delegation of American congressmen, Prime Minister Marcel Ciolacu emphasized in a press release that...

"Romania is and will remain a pillar of transatlantic cohesion on NATO's Eastern flank"