Press Release No. 00/22

The Executive Board of the International Monetary Fund (IMF) today approved an extension of the stand-by credit to Romania to May 31, 2000. The arrangement had been due to expire on March 31, 2000. The extension was granted to enable completion of the first review of the program under the stand-by credit, which had been delayed since October 1999. Completion of the review is now contingent on agreement on a program for 2000. Parliamentary approval of a 2000 budget, consistent with the parameters of the program, is a prior action for consideration of the review by the Executive Board. The Romanian authorities currently envisage approval of the budget by mid-April, implying the need for an extension to permit completion of the review. In the context of the review, the authorities intend to request a further extension of the stand-by credit to end-February 2001.

The stand-by credit, which was approved in August 1999, totals an amount equivalent to SDR 400 million (about US$540 million), of which SDR 53 million (about US$71 million) have been borrowed.

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