International institutions break off talks with Romania in the absence of a government

World Bank has postponed its visit in Romania, which was initially scheduled for this week simultaneously with IMF’s, until a new cabinet had formed, according to the representatives of the World Bank.

“World Bank has postponed its visit initially scheduled for this week until a new cabinet is formed. The visit was scheduled simultaneously with IMF’s, given the role of the Fund in the stand-by arrangement with Romania”, World Bank said.

International Monetary Fund said last week that a mission to initiate discussions with authorities on the second review of the Stand-By Arrangement was expected to visit Romania as soon as the new cabinet had been formed.

“A mission to initiate discussions with authorities on the second review of the SBA is, therefore, expected to visit Romania as soon as a new cabinet has been formed," said Jeffrey Franks, IMF mission chief for Romania and Bulgaria.

Franks also said the institution was closely following political developments in Romania, and “does not anticipate an interruption in the Stand-By Arrangement or a change in policy as a result of these developments”.

“Program initiated by the International Monetary Fund support sound economic policies of partner countries, not a particular government or a political party,” Franksa said in the press statement.

The interruption of the agreement with IMF would be disastrous for Romania, because if anything set out under the SBA went off track, the borrowing costs would be enormous, said recently the designated Prime Minister Lucian Croitoru.

“Any delay can bring upon enormous costs”, said Croitoru when asked whether an interruption of the stand-by arrangement with International Monetary Fund would lead to a financial instability.

Lucian Croitoru said he would hold consultations with political parties PSD, PNL, UDMR and minorities, announcing he would request PSD to make three nominations for Interior Minister.