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Romania: Hopes Raised For IMF, World Bank Loans

Bucharest, 9 April 1997 (RFE/RL) - Romania's Government today signed a letter of intent for an International Monetary Fund (IMF) loan. The agreement anticipates a $400 million loan to support the new government's reform plan. The loan is expected to be approved formally by the IMF's Board this month.

The German news agency, DPA, quotes IMF envoy Paul Thomsen as saying today that Romania has good prospects for a new standy-by credit despite "some delays" in its reform program.

Our Bucharest correspondent quotes Prime Minister Victor Ciorbea as saying the World Bank this month also is expected to approve a $600 million loan for Romania. Ciorbea also said Bucharest anticipates substantial funds this year from the European Union and some leading donor countries.

Ciorbea said most funds would be devoted to the social-welfare system, restructuring industry and agriculture, for needed road work and for environmental protection.