Forbes: IMF calmed fears in Romania but electoral ambitions and the economic reality might postpone the loan

Joi, 22 octombrie 2009, 11:32 English | Regional Europe

IMF calmed Eastern European fears regarding the total financial crisis in the region. In the last months, foreign banks in the economies most hit by the crisis - Romania, Hungary and Serbia - engaged to support their branches, Forbes informs in an editorial signed by Nouriel Roubini, professor at Stern Business School at New York University.

Even with IMF aid, these economies are not immune to the crisis. A special interest is given to the difficulties faced by Eastern European governments who attempt to balance their electoral ambitions and economic realities, the editorial reads.

IMF showed flexibility in negotiations with European states so far and the Fund relaxed its requirements regarding the agrarian reform in Ukraine and accepted higher budgetary deficit targets.

The IMF announced last Thursday that they will postpone the evaluation visit at Bucharest until the clarification of the political situation and until the new government is formed.