EU-IMF Lenders Conclude Romania Bailout 'Broadly On Track'

The EU, IMF and World Bank said Tuesday that economic reforms agreed with the Romanian government, currently in political crisis, remain "broadly on track."

In a statement marking the end of a sixth review of progress under a three-year-old bailout program, the international lenders said Bucharest was going in the right direction despite "challenging conditions."

"Political determination is needed to ensure that overdue structural reforms -- necessary to achieve higher and inclusive growth -- will be put in place," it said ahead of the IMF board signing off the latest plans around late-September.

Romania's economy emerged from recession in the second quarter of 2012, booking 0.5 percent growth compared to the first three months of the year, official estimates in Bucharest showed on Tuesday.

The EU-IMF statement said "real growth is projected at around 1.0 percent in 2012 and 2.5 percent in 2013."

Analysts have warned that the recovery in Romania after two years of severe recession is threatened by a political war between the ruling Social-Liberal Union coalition and center-right President Traian Basescu, targeted by an impeachment bid launched six weeks ago.

Romanians who cast ballots in a controversial referendum last month voted overwhelmingly for Basescu's removal, but its validity is being disputed and the EU has already warned Prime Minister Victor Ponta to ensure judges are not pressured and intimidated.

In May 2009, Romania obtained a 20-billion-euro rescue package ($24.7 billion at current exchange rates) from the IMF, the EU and the World Bank in exchange for drastic spending cuts.

In March 2011, the IMF and the EU agreed to provide a fresh credit line of 5.0 billion euros, to be drawn down only in case of emergency.