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IMF representative: relaxation of the conditions for a loan is no excuse to postpone the economic reforms
Less severe conditions imposed to Romania by IMF to offer the loan are not used by the government as a excuse to postpone the economic reforms, Tony Lybek said, the IMF representative to Romania. The agreement with the IMF is cheaper than loan to the banks and the conditions were the softest Romania has ever had.
The representatives of the IMF noticed that, in the end, the harsher conditions for loans could not be efficient, due to the fact that the authorities did not observe them. In the conditions of world crisis, imposing restrictive policies would risk to amplify the recession in the country.
The relaxation of IMF conditions does not mean the authorities could postpone the introduction of reforms as included in the agreement. “ Personally, I would like to add that this thing should not misunderstood, it is no excuse to delay the structural reforms on a long term. As regards the interest for the IMF loan, there is a detailed formula, which was approved by the 185 member states. In this case it is 3.5%” Tony Lybek said according to Gandul.
Some conditions imposed to Romania by IMF could be revised and moderated, due to the contraction of local economy by 6.4% during the first quarter, the IMF official added.
If Romania did not sign the contract with IMF it would be in a difficult situation Tony Lybek considered. Romania has a foreign private duty, on a short term, and loans could be paid out of their own resources, the economy would have to suffer.