The last loan payment from 2009, from the IMF, the World Bank and the European Commission, will be made in 2023. This is about 404.4 million euros that will go to the World Bank, of which 400 million is the rate. , the rest is interest and commissions.
Although there have been prime ministers in the past who boasted that they paid contributions to the IMF (for example, as Ponta was), it is necessary to see with what money it was done.
As you may have guessed, from other loans. That is, the debt was extended, with interest attached, but the money does not go in vain.
Interest and fees of €1.45 billion were paid on this loan with the IMF, the World Bank and the European Commission.
We will remind, in 2009, Romania took a stand-by loan from the International Monetary Fund for 24 months worth 12.95 billion euros, which is part of a support package of 19.95 billion euros provided by the IMF, the EU and the World Bank.
From this agreement with the IMF, seven out of 8 tranches were taken, totaling 10.57 billion SDR (approximately 11.9 billion euros). As for the 8th tranche, at the request of the Romanian authorities, it was considered preventive and was not used in the context of favorable macroeconomic events.
How much has reached the national debt of Romania?
The latest data, as of October 2022, show that the national debt is 48% of GDP. At one point it exceeded 50%, but the reason is simple: inflation significantly increased nominal GDP. So the GDP reporting shows us a decrease.
In fact, it increased to 651.5 billion lei after 577.5 billion lei in 2021.
The government’s new fiscal and budgetary strategy states that “taking into account the projected level of the budget deficit for the period 2022-2025, as well as current forecasts of macroeconomic indicators, we estimate that the share of gross public debt will be lower than 49.8% of GDP at the end of the forecast horizon “.
Thus, the government expects nominal GDP to be even higher due to inflation, so debt will be kept below 50% of GDP.
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Source: Hot News
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