Romanian Bank Chief Backs New IMF Deal

The governor of the Romanian national bank, BNR, Mugur Isarescu, said on Wednesday that Romania needed a new IMF deal.

"Such an accord is a must now," he said. "A new agreement with the IMF will add credibility to Romania's economic policies and help us to gain access to foreign capital at favourable rates."

Isarescu, who has led the key financial institution since 1990, is a respected voice in the country and his statements are followed carefully by officials.

Romania, which just ended a 2-billion-euro stand-by agreement with the IMF last weekend, until recently was undecided over a new agreement with international lenders.

Prime Minister Victor Ponta on Tuesday said that Romania should continue to have some sort of agreement with the IMF, but that parliament would have to decide on the issue.

"A new precautionary deal with the Fund will need to be discussed with all political parties and with President Klaus Iohannis... From my point of view, an accord with international institutions is rather good for Romania," Ponta said.

He added that while Romania can manage on its own and does not need IMF money, it would be good to have a safeguard against potential market turmoil.

Many experts say Romania should continue its agreement with international lenders as the continued international uncertainty generated by the Greek crisis makes it necessary. Finance Minister Eugen Teodorovici also supports the idea.

"Romania needs a new, flexible agreement to help protect us against market shocks. But the new accord has to be based on implementing structural reforms," economic analyst Carol Pop said.

Romania's 2013 loan with the IMF, the European Union and the World Bank was the third signed with international lenders since...