IMF agrees to extend Romania loan by three months

WASHINGTON: The International Monetary Fund on Wednesday said it had agreed to extend by three months Romania's loan to June 30, 2013.

The 3.5 billion euros ($4.53 billion) stand-by arrangement (SBA) was first approved in 2011. The authorities have chosen not to draw down the loan and treat it as " insurance" money.

"The extension, which was requested by the Romanian authorities, will provide them with time to implement the measures needed to complete the combined seventh and eight reviews under the SBA," the IMF said in a statement.

"The extension will, in particular, offer an opportunity to reduce arrears of the central and local governments and to take measures to improve the governance of state-owned enterprises."