IMF says Romanian Loan May Be Released In February 2010

Romania may be able to tap an International Monetary Fund aid package as early as February 2010 once a cost-cutting budget is approved, an IMF official said.

"Based on progress so far, we are optimistic that the staff can move the review quickly to the IMF executive board for a meeting by mid-February 2010," Jeffrey Franks, the IMF's mission chief to Romania, said in a statement.

The IMF put Romania's $29.3bln aid package on hold in November 2009.

Franks said Romania's macroeconomic outlook seemed better than it had in November 2009, helped by stronger external demand.

The Washington-based lender thinks Romania's 2009 decline in economic activity will be contained to about 7%, and growth in 2010 may be 1.3%.

"Markets have remained stable despite the recent political uncertainties, and we expect no undue difficulties in financing the fiscal deficit in the coming months," Franks added.