EU gave us the money, but we are risking not to receive them

From the amount of 12.95 billion euros that Romania has borrowed from International Monetary Fund, it already received only 5 billion. The next part of 1.9 billion euros will get into our accounts on September 15.

However, it appears that the compliance with the International Monetary Fund mission is very difficult for Romanian authorities. The IMF evaluations shows that the bank field is going relatively well, but the problem is on fiscal – budgetary policy. In order to make it work we need reforms and to reorganize the social policies, pensions and the salaries law in the public sector.

Signing the agreement with the IMF, the Romanian state has undertaken to take measures to strengthen the public finances, the first measure being the gradual reduction of the budget deficit through strict control of public expenses. Once the IMF mission will visit again Romania and based on their conclusions it will be decided whether to release the next part of loan or not.

From the amount of 12.95 billion euros that Romania has borrowed from International Monetary Fund, it already received only 5 billion. The next part of 1.9 billion euros will get into our accounts on September 15.

However, it appears that the compliance with the International Monetary Fund mission is very difficult for Romanian authorities. The IMF evaluations shows that the bank field is going relatively well, but the problem is on fiscal – budgetary policy. In order to make it work we need reforms and to reorganize the social policies, pensions and the salaries law in the public sector.

Signing the agreement with the IMF, the Romanian state has undertaken to take measures to strengthen the public finances, the first measure being the gradual reduction of the budget deficit through strict control of public expenses. Once the IMF mission will visit again Romania and based on their conclusions it will be decided whether to release the next part of loan or not.

The target of the budget deficit imposed by the IMF for the first quarter of 2009 is 8.3 billion, but Romania infringe it already in April when reached 9.35 billion of budget deficit.

The Government seems to rely on the IMF tolerance, but if the experts of the institution will not accept an increase of the budget deficit, Romania will lose the portions of the loan.