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Guillermo Tolosa, IMF: As of next summer Romania will no longer need a new accord


Most probably Romania will no longer sign a new stand-by accord with IMF as of next year, according to Guillermo Tolosa, the IMF representative for Romania. “Our expectation and I think their point of view too (of the government- e.n.) is that as of next summer Romania will be on its own and will no longer need these stand-by accords,” was the answer made by Tolosa to a question coming from foreign investors present at a meeting with Romanian and foreign investors organized this week by Franklin Templeton, the administrator of Property Fund.


Mention should be made that in 2009 Romania obtained a foreign financing program of 19.95 billion euro from IMF, EU, WB and other international financial institutions. The IMF component of the program represented a stand-by accord of 12.95 billion euro for two years, completed in 2011. The government continued the relationship with IMF by a preventive type accord of 5 billion euro expiring this year.


The IMF official spoke about political risks in Romania and was confident that there would be very few negative effects. “I don’t see a very big political risk in Romania. The letter of intention was signed a few months ago by an alliance including the socialists, liberals and another political group, parties which represented most of Romania’s Parliament. The alliance no longer exists now but I am still confident in political stability. Now we only have some political noise,” Tolosa mentioned.


The IMF representative pointed out that the only really important risk for Romania is that of not implementing reforms quickly enough. “The only risk is a not very rapid implementation of reforms which we have already discussed. It is a risk for Romania of not reaching its potential. Otherwise I do not expect major problems in years to come. The Ukrainian crisis is not a major risk for Romania. On the contrary, I heard talks about investors who have reconsidered their stands in Russia and reoriented towards East European countries, Romania included,” Guillermo Tolosa concluded.