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He declared that the agreement regarding the maintainance of banks capital in the country is temporary and will probably not be necessary in a year and a half. Once the economy will recover, financial institutions will even want to increase their exposure.
The need is not the same, which is why the new agreement will be made on a smaller sum. This is a precautionary agreement, which rules that each time an evaluation will be made and the board decides that the money are available, Romania will not take the money but will access them only when needed.
The IMF representative declared that the new agreement will include measures of reform that will ensure that the economy will recover, like the adjustment of the budgetary deficit. However, Franks warned that Romania will need a competitive economy only if it will manage to implement structural reforms.
