EU disburses loan instalment to Romania
(BUCHAREST) - The European Union said Thursday it had disbursed a new instalment of its five-billion-euro loan to Romania, stressing the Balkan country had delivered on its promises to adjust its finances.
"The EU today (Thursday) disbursed 1.2 billion euros to Romania. The payment is the fourth instalment of a 5-billion-euro loan agreed in May 2009 as part of a multilateral financial assistance package," a press release read.
"The disbursement to Romania follows a positive assessment by the Commission of the implementation by the Romanian authorities of the conditions agreed in the third Supplemental Memorandum of Understanding."
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.
With the current deal expiring in April, Romania has decided to sign a new two-year agreement with the IMF and the EU.
The credit line worth five billion euros ($7.0 billion) would only be used in case of emergency, the IMF said.
Text and Picture Copyright 2011 AFP. All other Copyright 2011 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.