Pakistan’s central bank left its benchmark interest rate unchanged after two straight increases, pausing even after the International Monetary Fund warned that reserves had fallen to a “critically low” level.
The International Monetary Fund was “very impressed” with the Romanian government’s commitment to its bailout agreement after it raised a sales tax to win approval, said Jeffrey Franks , the fund’s mission chief to the country.
The International Monetary Fund completed a review of Romania’s loan accord and agreed to let the country widen its budget deficit to accommodate a public- sector wage increase after a third government took office this year.
The International Monetary Fund probably will cut its 2012 growth forecast for Romania’s export- reliant economy as the euro-area debt crisis crimps growth in the Balkan country’s main trading partners.
Romania agreed to terms that may release 2.4 billion euros ($3.3 billion) of bailout loans from the European Union, International Monetary Fund and World Bank as it seeks to recover from the deepest recession on record.
Romania will probably meet all the targets set for its International Monetary Fund review and the country’s economic data look “promising,” said Jeffrey Franks, the lender’s mission chief in the country.
Romania has reversed its image as an economic “mediocre student” after the government weathered no- confidence votes and protests to adhere to International Monetary Fund demands for spending and job cuts, said the IMF’s mission chief to the Balkan country.