Good Finance will not enter into a new loan agreement with the International Monetary Fund (IMF) after 2015, said Liviu Voinea, Romanian Minister for the Budget.
The head of the ministry was quoted by Romanian public radio on Tuesday. Voinea explained that Romania does not need a new multilateral international credit agreement, of which it has concluded three since 2009 with the IMF, the European Commission and the World Bank.
This gives Romania a signal that its economy has strengthene
According to Voinea, this gives Romania a signal that its economy has strengthened.
The minister recalled that Good Finance had signed a two-year revolving credit facility of EUR 20 billion with the IMF and in 2011 a EUR 5 billion precautionary loan agreement.
Voinea emphasized that Romania did not use the latter loan, as it did not use the EUR 4 billion in the precautionary loan agreement concluded last year and valid until 2015.
“The crisis is over, why would a new credit agreement be needed? This agreement with the IMF and the European Commission was certainly the last one, ‘said Liviu Voinea.
Economy was badly hit by the international economic crisis
The Romanian economy was badly hit by the international economic crisis that erupted in 2008, which is why Good Finance applied for a loan in 2009. In 2010, as part of a comprehensive package of austerity measures, public servant wages were temporarily reduced by 25 percent, raising the sales tax from 19 percent to 24 percent, which is currently at that level.
Romania’s economy grew by 3.5 percent last year
With an acceleration of 3.8 percent in the first quarter of this year, the highest growth rate in the European Union on an annual basis. The Romanian authorities expect GDP growth of 2.2 percent this year, but after extraordinary growth in the first quarter, it is estimated that growth in 2014 may reach up to 4 percent compared to the previous year (MTI).