IMF: Romanian Banks Not In Danger Of Collapsing
Romanian banking system remains rather balanced, despite some deleveraging from parent banks, and it is highly unlikely that one of the lenders should collapse, an official of the International Monetary Fund said.
However, in the unlikely event that this happens, the IMF is ready to increase the funds made available to Romania under its latest stand-by arrangement signed early this year, IMF mission chief Jeffrey Franks told Mediafax by phone.
Franks said some of the foreign banks have reduced their exposure to Romania in the last months, but others increased financing to their local subsidiaries, and so the system as a whole suffered little or no negative effects whatsoever.
On Monday, the IMF completed the third review of Romania’s economic performance under a EUR3.6 billion loan agreement and freed up additional EUR507 million to be drawn if need.
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