The International Monetary Fund’s Executive Board will analyze today, March 25, the consultations with Romania that took place on the basis of Article IV of the IMF Statute, according to the schedule published on the international financial institution’s website.
IMF and EC teams were in Bucharest on January 27 – February 10 in order to continue the talks concerning the third review mission under the precautionary stand-by agreement with the IMF and the first review mission under the precautionary balance of payments program with the European Union.
The missions were part of periodic consultations (usually annual) on the basis of Article IV of the IMF Statute, against the backdrop of a request to use IMF resources (IMF loan), as part of the talks on the programs that are monitored by experts or as part of other forms of monitoring economic developments.
In the Concluding Statement of the Article IV Mission in 2015, IMF experts estimated that Romania’s GDP will grow by 2.7 per cent this year and by 2.9 per cent in 2016, and the main factor that will form the basis of this development consists of the consolidation of private consumption against the backdrop of strong growth of the real salary, of low oil prices and of interest rates that have reached record lows.
At the same time, the IMF points out that the Romanian economy has for the most part corrected internal and external imbalances through a mix of solid macroeconomic policies, however Romania remains vulnerable to external shocks and the remedying of balance sheets is not finalized yet.
In the banking sector, the International Monetary Fund (IMF) pleads for a voluntary bilateral restructuring of CHF-denominated loans, by taking into consideration the debtor’s capacity to reimburse the loan. At the same time, IMF experts have recommended the National Bank of Romania (BNR) to limit its interventions on the forex market and to maintain a cautious attitude featuring a moderate accumulation of reserves.