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European Union is open to doubling at least the New Arrangements to Borrow


The International Monetary Fund (IMF) is and has to remain a quotas-based institution and we are prepared to support even their increase, taking into account that the European Union is open to doubling at least the New Arrangements to Borrow (NAB), Romanian Public Finance Minister Eugen Teodorovici said on Friday in Washington.

According to a release of the relevant ministry, Eugen Teodorovici headed on Friday, in Washington, the European Union delegation at the meeting of the International Monetary and Financial Committee (IMFC) dedicated to governance and resources of the IMF. Moreover, Minister Eugen Teodorovici represented the Romanian Presidency at the EU Council within the meeting in Washington of the G20 Finance Ministers and Central Bank Governors.

Within the IMFC meeting, Minister Teodorovici voiced the EU's standpoint to support the IMF role within the center of the Global Financial Safety Net, based on quotas and adequate resources. In this context, the Romanian Minister reiterated the EU's vision of maintaining the current level of the IMF resources as an important signal for ensuring the IMF's role as a safety net in the current economic situation.

"The International Monetary Fund is and has to remain a quotas-based institution and we are prepared to support even their increase. The European Union is open to doubling at least the New Arrangements to Borrow (NAB) and, in this regard, we are calling for a quick agreement for the future of NABs, on the basis of appropriate contributions," Minister Teodorovici, the President-in-office of the Economic and Financial Affairs Council (ECOFIN) said in his speech.

Within the G20 Finance Ministers and Central Bank Governors meeting, topics such as the investments in infrastructure and the Compact with Africa (CwA) were among the topics discussed. Moreover, issues such as global economic oversight, global imbalances, aging and its implications for public policies, financial innovation, addressing financial market fragmentation, debt sustainability and transparency in low-income countries, resilience against natural disasters, universal health insurance in developing countries were also discussed.

Regarding the Compact with Africa, the good progresses in many Compact countries have been highlighted in terms of structural reforms and attracting private investment, the press release said.

"As a key contributor to the Compact through its new External Investment Plan, the EU wants to call on all partners, including participating international organizations, to actively use all existing synergies," Minister Teodorovici concluded.

Moreover, within the meeting also supported was the EU's standpoint to endorse the G20 Japanese Presidency in updating the quality infrastructure agreement of the G20 Hangzhou Summit 2016 with a new set of principles that shall include key elements of sustainability.

"Adequate institutional governance is needed to prioritise and implement investment, as well as to increase sustainable financing and the funding must be carried out in a sustainable way so as not to threaten the macroeconomic stability of the beneficiary countries," the release mentions.

A day ago, minister Teodorovici met with representatives of the Romanian-American Business Council (AMRO) and of several companies that are part of the Business Council for International Understanding (BCIU), informs a press release from the Ministry of Finance sent on Friday.

The companies that had representatives at the meeting with the Romanian Finance Minister are Motorola Solutions, Textron, Exxon Mobil, Parsons Corporation, Amgen, Amro, Google, Swiss Re Management, Merck and Lockheed Martin. At the meeting, the Minister of Finance presented Romania's stable macroeconomic framework and its growth potential, the release specifies.

The second topic that was tackled was the provision of a legal framework conducive to foreign investment.

"We have established a foothold of the Romanian-American economic relations and met representatives of BCIU, whom we invited to invest in Romania. The attitude of the American party was favorable and we held an open discussion about the economic environment and Romania's development potential," Eugen Teodorovici said.

In his turn, Senior Vice President of BCIU Jeffrey Donald described as constructive and pragmatic the discussion with the Romanian minister and appreciated the direct approach in the relation to the business environment.

Eugen Teodorovici met with representatives of the World Bank, namely Koen Davidse, executive director of representing the constituency of which Romania is also part, Arup Banerji, Regional Director for the European Union Countries, Tatiana Proskuryakova, Country Manager for Romania and Hungary. During talks, they tackled collaboration within the constituency and reviewed the existing and future projects of the Bank in our country as well as the future developments and prospects in areas of interest for the Romanian Government.