A joint Commission, IMF and World Bank mission assessed Romanian compliance with the policy conditions attached to the EU balance of payments programme. It concluded that Romania had met most of them.
From 20-27 January, a joint Commission, IMF and World Bank mission visited Bucharest to assess Romanian compliance with the policy conditions attached to the EU Balance of Payments Programme and underpinning its EUR 20 billion support package. DG ECFIN was represented by Acting Director Matthias Mors and Head of Unit Fabienne Ilzkovitz.
The mission concluded that Romania had met most of these policy conditions. Romania has achieved the cash fiscal deficit target for 2009 (7.3% of GDP), has adopted a 2010 budget in line with the agreed deficit target (5.9%), introduced structural reforms and strengthened financial sector supervision.
Subject to approval by the Commission, disbursement of the second tranche of EUR 1 billion is expected in March.
A first instalment of €1.5 billion was already paid in July 2009, after a €5 billion package in financial assistance was agreed by the Council on a Commission proposal in May 2009.
Following the meeting, Commissoner Almunia said, "I commend the Romanian authorities and the Romanian people for the efforts made during this global crisis to limit the deterioration of the budget deficit and to preserve macro-economic stability."
>> MEMO/10/17. Statement by Commissioner Almunia on Romania
Another two EU countries are benefitting from EU financial assistance to support their balance of payments in the context of the unfolding financial crisis. In November 2008, the Council agreed on a Commission proposal for €6.5 billion support for Hungar. In January 2009 a €3.1 billion package was agreed for Latvia. In May 2009, the overall ceiling for balance-of-payments support was doubled to €50 billion.
EU financial assistance aims at helping countries to withstand short-term liquidity problems and restore investor confidence, and correcting large imbalances in their economies. In return, recipient countries must commit to carrying out reforms to correct public deficits, boost competitiveness and improve financial supervision.