This first and second reviews under the Stand-By-Arrangement analyzes Ex Post Evaluation of exceptional access for Romania. Efforts are needed to strengthen monetary policy transmission. The banking system remains well capitalized, but the authorities need to accelerate the resolution of nonperforming loans and closely monitor risks from parent bank deleveraging. The Romanian authorities continue their efforts to reach the goals of a broad structural agenda, with a focus on structural reforms in the energy, transport and healthcare sectors, and continue the reform of the state-owned enterprises.The bulk of problem loans is a legacy of several years of very high credit growth in the pre-crisis period when credit ... of loan deterioration (13.6 percent NPLs), except for the sub-segment related to credit card debt and debt in foreign currency. ... plan to support an orderly reduction of fully-provisioned NPLs should help the gradual convergence to more normal levels associated with the business cycle.
|Title||:||Romania: First and Second Reviews Under the Stand-By Arrangement and Request for Waiver of Nonobservance of a Performance Criterion, Modification of Program Conditionality, and Rephasing of the Availability Dates of Purchases; Staff Report; Press Release; and Statement by the Executive Director for Romania|
|Author||:||International Monetary Fund. European Dept.|
|Publisher||:||International Monetary Fund - 2014-04-01|