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IMF approves $17.1 billion loan for Romania

(Agencies)
Updated: 2009-05-05 15:23

WASHINGTON -- The International Monetary Fund has approved a $17.1 billion loan to Romania to cushion the effects of the sharp drop in capital inflows caused by the global financial crisis.

Special coverage: World Financial Turmoil Related readings:  'Use IMF bonds cash to fight crisis'  WB-IMF: Financial crisis turning into human, development crisis  IMF sees deeper recession, slower recovery  IMF says losses from credit crisis may hit $4.1 tr  Global crisis pushing 35m back into poverty: World Bank

The two-year loan is part of a larger $26.4 billion package to which the European Union, the World Bank and the European Bank for Reconstruction and Development are contributing, among others.

The IMF says $6.6 billion of its loan will be immediately available, and the rest will be paid in quarterly installments subject to the IMF's review of Romania's economy.

The IMF commended Romania on Monday for developing a comprehensive program to rebalance its economy.