President Traian Basescu proposed, on Monday, to the IMF Romania chief Jeffrey Franks to analyze the possibility to extend the current agreement Romania has with the IMF or the possibility to sign a precautionary agreement, Romanian news agency Agerpres informs.

The President met on Monday with Jeffrey Franks who attended the events organized by the National Central Bank to mark 130 years of existence. Basescu told Franks that the IMF should consider extending the agreement with Romania or consider the possibility to sign a precautionary agreement.

A precautinary agreement differs from a stand by agreement in that money are only used in emergency cases even though it sets similar economic agreements as the stand by agreement.

Franks underlined what the President declared, that Romania needs to improve the fiscal system to help use European funds. For Franks, the key is to eliminate barriers in the public sector.