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Romania: Ex Post Evaluation of Exceptional Access Under the 2009 Stand-By Arrangement
Author:
International Monetary Fund
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2012: Issue 064
Language:
English
Publication Date:
27 Mar 2012
DOI:
https://doi.org/10.5089/9781475502619.002
ISBN:
9781475502619
ISSN:
1934-7685
Pages:
32
Keywords:
ISCR; CR; banking sector; exchange rate; current account; central bank; arrears PC; financing program; funding regime; authorities commitment; program conditionality; public finance; short term; Fiscal sustainability; Arrears; Europe; Global
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This paper discusses ex-post evaluation of Romania’s exceptional access under the 2009 Stand-By Arrangement. Concerns about Romania’s external and fiscal sustainability have triggered significant increase in external borrowing costs as sovereign yields jumped to 9 percent. Banks also came under increasing pressure, with liquidity drying up from the interbank market. Rollover risks also increased as the maturity structure gradually deteriorated, and reserves coverage of shorter-term external debt declined. The large and front-loaded financing along with upfront fiscal actions has helped quickly to restore market confidence, with a successful return to private financial markets during the program period.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund