Romania to receive IMF-led bailout

Group of lenders agree to $27bn package to help European nation's struggling economy.

    Dominique Strauss-Kahn said the package will
    help strengthen Romania's financial sector [AFP]

    But the loan is unlikely to prevent Romania from slipping into recession this year.

    The IMF said the first tranche of funds to the tune of $6.7bn would be available by the summer.

    The centre-left coalition cabinet of Emil Boc, Romania's prime minister, will meet later on Wednesday to approve the deal.

    Dominique Strauss-Kahn, the IMF's managing director, said: "We welcome the pro-active approach by the Romanian authorities in the face of emerging financial tensions, which puts Romania on a good footing to face potential difficulties ahead."

    "The objective of the policy package is to cushion the effects of the sharp drop in private capital inflows while implementing policy measures to address the external and fiscal imbalances and to strengthen the financial sector," he said.

    SOURCE: Agencies


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