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    <title>Business Recorder - News</title>
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    <pubDate>Thu, 13 Aug 2026 12:30:50 +0500</pubDate>
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      <title>IMF sets aside total €4.6bn for Romania</title>
      <link>https://www.brecorder.com/news/8710/imf-sets-aside-total-46bn-for-romania</link>
      <description>&lt;p class="MsoPlainText"&gt;&lt;img style="margin-right: 10px; margin-bottom: 10px; float: left;" alt=" " src="https://i.brecorder.com/images/stories/pics2011/mar/IMF.jpg" width="400" height="300" /&gt;WASHINGTON: The IMF approved a new €3.6 billion loan for cash-strapped Romania on Friday, and said it would make €1 billion available from a previously-announced loan.&lt;/p&gt;
&lt;p class="MsoPlainText"&gt;The Washington-based International Monetary Fund said the funds were designed to support ongoing reforms even if Bucharest had indicated it would use the €4.6 ($6.5) billion as a safety net.&lt;/p&gt;
&lt;p class="MsoPlainText"&gt;"The authorities have informed the IMF that they intend to treat the new arrangement as precautionary and therefore do not plan to draw under it."&lt;/p&gt;
&lt;p class="MsoPlainText"&gt;Just having the cash could help reassure investors that the country has the fiscal firepower to manage its debts if things turn sour -- lowering interest rates on bonds and other loans.&lt;/p&gt;
&lt;p class="MsoPlainText"&gt;In May 2009, crisis-hit Romania obtained a two-year, €20-billion  ($28-billion) lifeline from the IMF, the European Union and the World Bank in exchange for key reforms aimed at slashing public spending.&lt;/p&gt;
&lt;p class="MsoPlainText"&gt;After years of steady expansion, Romania plunged into recession in 2009, and was forced to take a handout from the three institutions.&lt;/p&gt;
&lt;p class="MsoPlainText"&gt;With the country's budget in tatters, the government slashed public wages and hiked taxes on goods, sales and services.&lt;/p&gt;
&lt;p class="MsoPlainText"&gt;Romania was still in the grip of recession in 2010, when its economy shrank by 1.3 percent, according to official figures, but the IMF said Friday things were looking up.&lt;/p&gt;
&lt;p class="MsoPlainText"&gt;"The fiscal and structural measures already implemented are yielding results. The economy has stabilized and growth is resuming," said John Lipsky, the deputy head of the fund.&lt;/p&gt;
&lt;p class="MsoPlainText"&gt;&lt;Center /&gt;&lt;b&gt;&lt;i&gt;Copyright AFP (Agence France-Presse), 2011&lt;/b&gt;&lt;/i&gt;&lt;/center&gt;&lt;/p&gt;
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      <content:encoded xmlns="http://purl.org/rss/1.0/modules/content/"><![CDATA[<p class="MsoPlainText"><img style="margin-right: 10px; margin-bottom: 10px; float: left;" alt=" " src="https://i.brecorder.com/images/stories/pics2011/mar/IMF.jpg" width="400" height="300" />WASHINGTON: The IMF approved a new €3.6 billion loan for cash-strapped Romania on Friday, and said it would make €1 billion available from a previously-announced loan.</p>
<p class="MsoPlainText">The Washington-based International Monetary Fund said the funds were designed to support ongoing reforms even if Bucharest had indicated it would use the €4.6 ($6.5) billion as a safety net.</p>
<p class="MsoPlainText">"The authorities have informed the IMF that they intend to treat the new arrangement as precautionary and therefore do not plan to draw under it."</p>
<p class="MsoPlainText">Just having the cash could help reassure investors that the country has the fiscal firepower to manage its debts if things turn sour -- lowering interest rates on bonds and other loans.</p>
<p class="MsoPlainText">In May 2009, crisis-hit Romania obtained a two-year, €20-billion  ($28-billion) lifeline from the IMF, the European Union and the World Bank in exchange for key reforms aimed at slashing public spending.</p>
<p class="MsoPlainText">After years of steady expansion, Romania plunged into recession in 2009, and was forced to take a handout from the three institutions.</p>
<p class="MsoPlainText">With the country's budget in tatters, the government slashed public wages and hiked taxes on goods, sales and services.</p>
<p class="MsoPlainText">Romania was still in the grip of recession in 2010, when its economy shrank by 1.3 percent, according to official figures, but the IMF said Friday things were looking up.</p>
<p class="MsoPlainText">"The fiscal and structural measures already implemented are yielding results. The economy has stabilized and growth is resuming," said John Lipsky, the deputy head of the fund.</p>
<p class="MsoPlainText"><Center /><b><i>Copyright AFP (Agence France-Presse), 2011</b></i></center></p>
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      <guid>https://www.brecorder.com/news/8710</guid>
      <pubDate>Fri, 25 Mar 2011 23:12:31 +0500</pubDate>
      <author>none@none.com (Imad Uddin)</author>
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