The premier said the Cabinet would draft in today’s session the letter of intent which would be afterwards sent to IMF and EC. After IMF’s return, the government will sign the loan agreement with the two institutions.

“We are expected to receive a response both from the Commission and from the IMF within 10-14 days. Afterwards, we will be able to sign the loan agreement. Once the arrangement is approved by the board, the loan will be released in phased installments to Romania”, said Boc.

President Traian Basescu told to the members of IMF delegation that they were “more relaxed” in requesting the Government to “take serious steps”.

Traian Basescu: IMF was more relaxed in asking the government “to take serious steps”

Traian Basescu thanked IMF delegation for the effort they had put in this period to “correctly diagnose” Romania. IMF’s assessment over the country’s economic conditions is leverage for Romania over the countries that evaluate Romania at a regional context.

“Romania is included in the region without a thorough individual assessment of the country. Thank you for the professional approach on the country’s status”, said Basescu.

“On the other hand, I must admit, that compared to the requirements formulated before the Parliament, you were more relaxed in demanding the Government to take serious steps. I have to admit that, on one hand, it is a positive thing, but on the other hand I expect more support from you in order to stimulate the politicians to continue the reforms”, said the head of the state.

IMF and local authorities have agreed on a projected budget deficit of 4.6%

Romania and International Monetary Fund officials have unanimously agreed on a projected budget deficit of 4.6% of GDP for this year, at a 20bln euro rescue package, a source familiar with the issue told Reuters.

“Both parties have agreed on a projected deficit of 4.6% of GDP, IMF expecting a 4% contraction of the economy”, a source within the coalition familiar with the content of the letter of intent said.

The source said the total package that includes funds from IMF, European Commission and other financial institutions would amount to 20 bln euros.

On Monday, the president of leftist Social Democratic Party said the rescue package from IMF is estimated at 13 bln euros, which would be earmarked to stabilize local currency rates while the European Union would lend 5 bln euros to cover budget deficit and investments.

World Bank, EBI and EBRD would grant a combined loan of 2 bln euros, Geoana added.