Romania : Request for a Stand-By Arrangement.
Title:
Romania : Request for a Stand-By Arrangement.
Author:
European Dept., International Monetary Fund.
ISBN:
9781484393529
Personal Author:
Physical Description:
1 online resource (116 pages)
Series:
IMF Staff Country Reports
Contents:
Cover -- CONTENTS -- INTRODUCTION -- RECENT ECONOMIC DEVELOPMENTS -- OUTLOOK AND RISKS -- PROGRAM POLICIES -- A. Fiscal Policy: Strengthening the Institutional Framework -- B. Structural Reforms: Increasing Investment and Growth -- C. Financial Sector Priorities: Dealing with NPLs and Contingency Planning -- D. Monetary and Exchange Rate Policies: Anchoring Expectations -- PROGRAM MODALITIES -- A. Access and Phasing -- B. Program Conditionality and Monitoring -- C. Capacity to Repay the Fund and Risks to the Program -- STAFF APPRAISAL -- BOXES -- 1. Romania 2009-11 and 2011-13 Stand-By Arrangements -- 2. What is Holding Back Credit Growth in Romania? -- 3. Program Objectives, Policy Areas and Key Measures -- 4. Initial Public Offerings -- 5. Exceptional Access Criteria -- FIGURES -- 1. Real Sector, 2007-13 -- 2. External Sector, 2007-13 -- 3. Labor Market, 2007-13 -- 4. Monetary Sector, 2007-13 -- 5. Fiscal Operations, 2007-13 -- 6. Financial Sector, 2007-13 -- 7. Financial Developments, 2011-13 -- 8. Public Debt Sustainability: Bound Tests -- 9. External Debt Sustainability: Bound Tests -- TABLES -- 1. Quantitative Program Targets -- 2. Proposed Conditionality -- 3. Selected Economic Indicators, 2009-14 -- 4. Medium-Term Macroeconomic Framework, Current Policies, 2009-18 -- 5. Balance of Payments, 2009-15 -- 6. Gross Financing Requirements, 2012-15 -- 7. General Government Operations, 2009-15 -- 8. Monetary Survey, 2009-14 -- 9. Financial Soundness Indicators, 2008-13 -- 10. Schedule of Reviews and Purchases -- 11. Indicators of Fund Credit, 2013-18 -- 12. Public Sector Debt Sustainability Framework, 2008-18 -- 13. External Debt Sustainability Framework, 2008-18 -- APPENDIX -- I. Letter of Intent -- Attachments -- I. Memorandum of Economic and Financial Policies -- II. Technical Memorandum of Understanding -- CONTENTS -- INTRODUCTION.
BACKGROUND -- THE NEW STAND-BY ARRANGEMENT-RISKS AND IMPACT ON FUND'S FINANCES -- A. Risks to the Fund -- B. Impact on the Fund's Liquidity Position and Risk Exposure -- ASSESSMENT -- FIGURES -- 1. Debt Ratios for Recent Exceptional Access Arrangements -- 2. Exceptional Access Levels and Credit Concentration -- 3. Fund Credit Outstanding in the GRA around Projected Peak Borrowing -- 4. Peak Fund Exposure and Debt Service Ratios for Recent Exceptional Access Cases -- TABLES -- 1. Proposed SBA-Access and Phasing -- 2. IMF Financial Arrangements, 1991-2020 -- 3. Total External Debt, 2007-2012 -- 4. Romania-Capacity to Repay Indicators -- 5. SBA for Romania-Impact on GRA Finances.
Abstract:
Stand-by Arrangement: Romania successfully completed in June 2013 a 27-monthStand-By Arrangement (SBA), including a three-month extension, equivalent toSDR 3,090.6 million (3.4 billion, 300 percent of quota). The authorities have requesteda successor 24-month SBA with proposed access of SDR 1,751.34 million (about2 billion, 170 percent of quota). The first tranche of SDR 194.7 million would be madeavailable upon program approval. The authorities intend to treat the SBA asprecautionary and have also requested support from the European Union (2 billion),while 1 billion remains available under a World Bank policy loan. Program objectives: Since the 2008 global financial crisis, Romania has madesignificant progress in reducing macroeconomic imbalances and rebuilding fiscal andfinancial buffers. However, Romania remains vulnerable to external shocks, in particularuncertainties in the euro area as well as global volatility in capital flows to emergingmarkets. The new SBA would provide a valuable policy anchor and support Romania'scomprehensive economic program for 201315 to maintain sound macroeconomicpolicies and financial sector stability and continue structural reforms to enhancegrowth prospects. Program conditionality: Romania's cumulative access, net of scheduled repurchases,would be exceptional given its outstanding credit to the GRA arising from purchasesunder the 200911 SBA. The program calls for continued gradual fiscal adjustment andallows for short-term measures in support of domestic demand. Structural reformsbuild on the previous program with a focus on arrears reduction. Conditionality isfront-loaded via a number of macro-critical structural benchmarks. An Ex PostEvaluation is envisaged for around end-2013 and an update of the SafeguardsAssessment by the time of the first review. Staff views: Staff supports the authorities'
request for a new SBA. A precautionaryFund-supported program would foster policy discipline and provide a reserve buffer,while helping to catalyze support for difficult structural reforms and put Romania on afirm path toward exiting from Fund support.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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