Bancherul - BANCI / ENGLISH / IMF to close down office in Bucharest

The International Monetary Fund (IMF) could withdraw its representative for Romania because of financial problems and only be represented by an economist for whom the central bank would provide office, people close to the deal said.

IMF angles to reduce costs and the restructuring will affect not only its office in Romania but other offices in the region too. The office in Romania could be shut down and IMF might accept the central bank’s offer to continue operating in one of its offices.

“In Washington there are ongoing discussions over sacking 400 IMF employees because of the fund’s financial problems. In Romania IMF could remain with one representative, an economist of Romanian origin or not,” the mentioned source said.

However, Romania’s representative at IMF, the former Finance Minister Mihai Tanasescu will keep his title.

The central bank had previously proposed IMF to create a regional office in Bucharest. IMF rejected the proposal and preferred to keep its office in Warsaw responsible with the entire region.

Starting 1972 Romania obtained financial assistance from IMF and had ten stand-by agreements. The last one, started in 2004, was a preventive one.