Loan 
IMF Approves First Review Of New Loan Deal With Romania
The International Monetary Fund Board approved on Monday the first review of the precautionary up deal with Romania. The IMF officials evaluated Romania's performance in the first quarter, as well as reforms which the authorities have pledged to implement. As a result of the approval of the review, the IMF will make available the second tranche, worth around EUR480 million. In March, Romania and the IMF signed a EUR5 billion loan agreement, successor to a larger EUR20 billion bailout package that ended in April this year. Under the new deal, the IMF will disburse Romania EUR3.5 billion, while the EU and the World Bank contribute with EUR1.4 billion and EUR400 million, respectively. However, Romania will access the funds only in case of economic distress. citeste mai mult
EIB gives Serbia loans of EUR 650 million for SMEs, Mid-caps and Fiat Auto Serbia
A delegation of the Republic of Serbia arrived today at The European Investment Bank (EIB) headquarters in Luxembourg. On the occasion, the following loans for a total of EUR 650 million were signed: a EUR 150 million loan for small and medium enterprises (SMEs) and Mid-Caps; a EUR 500 million loan for the investment program carried on by Fiat Auto Serbia. The EIB was represented by Dario Scannapieco, Vice President responsible for operations in the Western Balkans; the Republic of Serbia by the Deputy Prime Minister Bozidar Djelic, the Minister of Economy and Regional Development Nebojsa Ciric and by the Governor of the National Bank of Serbia Dejan Soskic. Support to SME sector The loan for SMEs and Mid-Caps (also called "Apex loan") is aimed at financing SME and Mid-Cap projects which are considered to be the driving force of the Serbian economy. The objective of the loan is to provide support for the... citeste mai mult
Romania January Private Lending Down 1.5 percent, On Month. Deposits Down 1.8 percent
According to the central bank data, Romanian private lending fell 1.5% in real terms to 207.8 billion lei (EUR1=RON4.23) in January from a month earlier, but was up 4.3% on the year. On the other hand, deposits of non-government resident customers declined 1.8% on the month to RON174.3 billion in January, but were up 6,1% on the year. Private loans in Romanian lei declined 1.3% on the month to RON76.9 billion in January, while foreign currency loans decreased by 0.8% when expressed in lei. When expressed in euros, forex loans nudged down 0.1% in January. Compared with January 2010, loans in Romanian lei fell 4.2% in January, whereas hard currency loans rose 10% when expressed in lei . The deposits in lei went down 2% on the month to RON111.2 billion in January, while foreign currency deposits declined 1,3% when expressed in lei to RON63.09. When expressed in euros, forex deposits decreased by 0.6% in January. Compared with January... citeste mai mult
IMF: Retroactive Consumer Loan Norms Can Have Negative Effects For Romania
IMF mission head Jeffrey Franks stressed out that the decision to apply the EU directive on consumer loans retroactively could have “negative effects” for Romania. Franks said the Romanian authorities agreed to consider implementing the norms only for new loans. "We're optimistic we can find a solution," Franks said after a meeting with officials of Romania's consumer protection authority ANPC. Romanian government approved in June an emergency ordinance regarding consumer loans, based on a document drafted by ANPC. The act transposes a European directive into the local legislation. The ordinance eliminates early repayment fees for loans with variable interests and introduces a new calculation method for interests, based on a transparent reference index plus a fixed percentage, which cannot be modified throughout the duration of the contract. ANPC extended the directive's stipulations to also cover existing... citeste mai mult
IMF Review Mission Visits Romania On Wednesday
A delegation of the International Monetary Fund will arrive in Romania Wednesday, October 20, to review the country’s progress under a EUR13 billion loan agreement. IMF officials will also have preliminary talks with Romanian authorities about continuing the current program and negotiations will likely take place early next year. The delegation will look at statistics and assess progress made since the last evaluation and decide on the steps to be further taken to ensure macroeconomic and financial stability and help the country go back to economic growth, according to Tonny Lybek, the IMF's representative for Romania and Moldova. citeste mai mult
Stress Tests: Romanian Banking Sistem Can Resis A Potential Worsening Economic Environment
Central bank data shows that local market lenders dispose of sufficient capitalization to resist a potential worsening economic and financial environment. However, loan portfolios are mostly vulnerable to adverse conditions and banking provisions are expected to increase by 38% on the year in 2010, according to the central bank’s financial stability report. "The deterioration of loan portfolios is mainly due to the exposure to companies (in 2010) and population (in 2011). Provisioning is estimated to increase by approximately 38% in 2010 and by 21% in 2011," the central bank said. "Under the test scenario, the banking system's combined result will be null in 2010, followed by growth in 2011," it added. In January to June, Romanian lenders reported combined losses of 234 million lei (EUR1=RON4.2396), from earnings of RON90 million in the same period a year earlier. citeste mai mult
Romania’s Finance Minister: No Talks About A New IMF Loan
Finance Minister Sebastian Vladescu said today that the Romanian authorities are not discussing about a new loan with the IMF representatives. "The topic in not on the talks agenda at this point," Vladescu told reporters. This matter was confirmed by Prime Minister Emil Boc. Vladescu’s statement comes as a respons to what Cezar Coraci, the head of Romanian employers' confederation UGIR-1903 said earlier. Coraci declared that IMF mission chief Jeffrey Franks told employers that Romanian authorities and the International Monetary Fund are discussing a possible new loan. citeste mai mult
Romanian Unions and Employers Ask Govt to Draft a New Letter to IMF Deal
A new letter of intent to the loan agreement with the International Monetary Fund must be written, Romanian union and employers’ representatives said to the Government today, after Romania's Economic and Social Council assembly. They want their proposals included in the new letter, stressing they firmly disagree with the recently announced salary and pensions cuts. The assembly failed to approve, today, Romania's most recent letter of intent under the agreement with the IMF. The 15 government officials were the only to vote in favor, the 15 unionists voted against and employers' representatives voted in favor of the letter but also called for changes. Thus, the Council neither approved, nor disapproved the document and therefore will meet again next Monday. Romania's Cartel Alfa union confederation head, Bogdan Hossu, said unionists will stage a full-blown strike and call for Government's resignation if the Executive adopts the... citeste mai mult
Romania Will Get Next Tranches Of IMF Loan
Romanian Prime Minister Emil Boc announced on Sunday that Romania will not have any problems in getting the next tranches of a EUR13 billion loan, as the country fulfilled its engagements. "I believe there will be no problems in getting the next tranches of the loan as the country fulfilled its engagements and the program will continue," Boc said. citeste mai mult
Romania May Get the Next Two Installments of the IMF Loan On Feb 17
Romanian President Traian Basescu announced today that Romania might get two new installments, totaling EUR2.3 billion, of a EUR13 billion loan from the International Monetary Fund (IMF) on February 17, adopting the 2010 budget by mid-January. "We must have a functioning government by December 23 so that it can send the budget to parliament by year-end and the parliament may begin debates on January 4 or January 5 and have it approved on January 16," Basescu said. He added half of the money would go to the central bank and the other half to the Finance Ministry to support the budget deficit. Early 2009, the IMF has lent Romania EUR13 billion as part of a larger bailout package which includes funds from the EU, the World Bank and other financial organizations to cushion the effects of a deepening recession. Normal 0 false false false MicrosoftInternetExplorer4... citeste mai mult
