WASHINGTON, Dec 17 (Reuters) - Romania may be able to tap an International Monetary Fund aid package as early as February once a new government is installed and a cost-cutting budget is approved, an IMF official said on Thursday.
"Based on progress so far, we are optimistic that the staff can move the review quickly to the IMF executive board for a meeting by mid-February," Jeffrey Franks, the IMF's mission chief to Romania, said in a statement.
"Subject to the IMF board's favorable decision, disbursement can follow," he said.
The IMF put Romania's $29.3 billion aid package on hold last month. For more see [ID:nLDE5BD0G7].
Franks said Romania's macroeconomic outlook seemed better than it had in early November, helped by stronger external demand. He said the Fund thinks Romania's 2009 decline in economic activity will be "contained" to about 7 percent, and growth in 2010 may be 1.3 percent.
He said preliminary figures suggested Romania's 2009 budget deficit target of 7.3 percent of GDP was within reach, provided spending remains controlled in the final weeks of the year.
"Markets have remained stable despite the recent political uncertainties, and we expect no undue difficulties in financing the fiscal deficit in the coming months," he said.
A joint IMF, European Commission and World Bank mission to conclude a review under an IMF-supported loan package could happen in January once a new government is in place, he said. (Reporting by Emily Kaiser; Editing by Theodore d'Afflisio)
Source:forexyard.com/
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