The three world institutions granting Romania the foreign support package and the heads of several important banks operating on the Romanian market will meet in Vienna on Thursday, said Jeffrey Franks, head of an IMF delegation, at a press conference following negotiations with the Romanian authorities in Bucharest.
According to the head of the IMF delegation, the three world institutions sent the private banks the message that they should keep on their exposure to Romania and should not allow the capital to migrate westward, but should create a liquidity protection in the Romanian banking system.
Romania's Central Bank will monitor the process so that the Romanian banking system's solvability and health could be ensured, said Franks, adding that the foreign banks operating in Romania are going to benefit indirectly when the support package will have the expected effects.
The IMF and Romania have agreed upon a 20-billion-euro (25 billion U.S. dollars) aid package in a bid to help the Black Sea state to tide over the current global financial crisis.
The package will be made up of about 13 billion euros (16.25 billion dollars) from the IMF and the rest from the European Union, the World Bank, and the European Bank for Reconstruction and Development.
Franks said the package's two-year term is the most adequate for Romania, which will be the sixth eastern European nation to be bailed out as the region's economies are struggling in hardships.
Source: FOCUS infromation Agency
