Romania: Second Review under the Stand-By Arrangement and Request for Modification of Performance Criteria-Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Romania.

IMF Staff Country Reports, October 5, 2011

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Romania: Second Review under the Stand-By Arrangement and Request for Modification of Performance Criteria-Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Romania.

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Bibliographic details

• Authors: Arrangement, Request
• Published: October 5, 2011
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781463921910.002

Executive summary and macroeconomic assessment

• Although the economic growth of Romania has resumed, it has boosted downside risks.
• The country has continued its strong performance under the new program in:
  • strengthening macroeconomic policies,
  • accelerating structural reforms,
  • consolidating economic development.
• The authorities concur that the current precautionary Stand-By Arrangement (SBA) will provide additional security against unforeseen shocks, thereby setting the stage for strong and sustainable economic development while maintaining external and internal stability and thereby achieving the fiscal goals for 2012.

Findings and implications

• Resumed economic growth has increased downside risks.
• Program performance has been strong across policy implementation, reforms, and consolidation efforts.
• The precautionary SBA is viewed as a tool to mitigate unforeseen shocks and support fiscal and macroeconomic objectives.

Policy focus and recommendations

• Maintain and strengthen macroeconomic policies to preserve external and internal stability.
• Continue accelerating structural reforms to support sustainable growth.
• Use the precautionary Stand-By Arrangement (SBA) as additional security against unforeseen shocks.
• Prioritize achieving the fiscal goals for 2012 while managing downside risks associated with the recovery.

Subject coverage and keywords

• Subject: Arrears, Economic sectors, External debt, Inflation, Prices, Public debt, Public enterprises
• Keywords: Arrears, authority, CR, EU funds, Europe, executive board's discussion, Global, government, government lending, government ordinance, Inflation, ISCR, Public enterprises, Romania's capacity, securitizing SOE arrears, Western Europe

Content in this bundle

• The Stand-By Arrangement
  • The Stand-By Arrangement (Markdown version)
  • The Stand-By Arrangement (PDF)