IMF mission to discuss new deal with Romania

(BUCHAREST) - The International Monetary Fund (IMF) will send a new mission to Romania on January 25 to examine recent reforms and start talks on a new agreement, its representative in Bucharest said Wednesday.

"The mission will evaluate Romania's recent economic performance and discuss with the authorities the economic objectives for the remaining period of the current stand-by arrangement," Tonny Lybek said in a press release.

"The mission will also initiate negotiations on a possible successor arrangement," he added.

Last week the central bank said Romania planned to conclude a new agreement with the IMF and the European Union when the current bailout deal expires, in April.

Romanian authorities said they want a precautionary credit line under which funds are drawn upon only in case of a major crisis.

On Friday, the IMF board gave its green light to a new disbursement worth around 900 million euros ($1.17 billion) of its 13.46-billion-euro loan to Romania.

In a press release, IMF first deputy managing director John Lipsky said: "Romania is now on a clear path to meeting its short and medium-term fiscal goals. The current challenge is to fully implement the approved reforms and maintain tight control over expenditures."

In May 2009, crisis-hit Romania obtained a two-year 20-billion-euro lifeline from the IMF, the EU and the World Bank in exchange for key reforms aimed at slashing public spending.