BUSINESS

Romania’s 2014 payment obligations to IMF, EU and IBRD amount to EUR 1.172 bln

Romania must this year repay the International Monetary Fund (IMF), the European Union (EU) and the International Bank for Reconstruction and Development (IBRD) over EUR 1.172 bln, by 0.72 per cent more than in 2013, on account of the stand-by loan engaged in 2009, shows data released by the Government. Of this amount, EUR 1.002 bln are payable to the IMF, EUR 150.1 M to the EU and EUR 20.5 M to the IBRD.
Out of the more than one billion euros to be transferred to the IMF, EUR 984.8 M represent principal repayments and EUR 17.2 M are interest payments and fees. As concerns the repayment obligations to the European Union, the entire amount represents interest payments and fees, just as in the case of IBRD. The repayments are performed on account of the EUR 19.95 bln financial package granted to Romania by international lenders in 2009. The repayment peak under this package is in 2015, when the authorities have to pay back EUR 1.826 bln. In 2009, Romania secured a 2-year stand-by agreement worth 12.95 billion euros with the IMF as part of a 19.95 bln euro financial support package ensured jointly by the IMF, the EU and the World Bank.
Under this arrangement with the IMF, Romania took out seven of the eight tranches available, worth a total of 10.57 bln SDR (about EUR 11.9 bln euros).
At the request of the Romanian authorities, the eighth tranche was tagged as preventive and, amid the favorable macroeconomic developments, was no longer used.

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