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Romania loan payments set to resume

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Romania loan payments set to resume

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Romania is to start receiving emergency loan instalments again after succeeding in efforts to get its spending under control.

A 20 billion-euro fund was agreed last spring to help the country out of recession but it was blocked in November amid a political crisis.

But a new government and budget mean international donors will resume payments.

The International Monetary Fund will disburse 2.3 billion euros in February and the EU will give a further one billion euros in March.

Half of that is expected to go towards paying public sector salaries.

European, IMF and World Bank delegates visited newly re-elected President Traian Basescu last week to review Romania’s budgetary progress.

They concluded that the programme to control the spiralling budget deficit was “broadly on track.”