RRI Live!

Listen to Radio Romania International Live

A New Assessment Mission in Bucharest

A joint mission of the International Monetary Fund, the European Commission and the World Bank is currently in Bucharest to make a new assessment, the fifth, of the agreement concluded with Romania in the spring of 2011.

A New Assessment Mission in Bucharest
A New Assessment Mission in Bucharest

, 26.04.2012, 14:58


A joint mission of the International Monetary Fund, the European Commission and the World Bank is currently in Bucharest to make a new assessment, the fifth, of the agreement concluded with Romania in the spring of 2011. That is the last visit to Bucharest by the incumbent chief of the IMF delegation to Romania, Jeffrey Franks, who will hand over the position to Dutch Erik De Vrijer, who is also accompanying the current mission in Bucharest.




The IMF has made available to Romania some 2 billion Euros so far, after the Managing Board disbursed another payment, worth 505 million Euros following the assessment mission in early February. The current agreement between Bucharest and the IMF is a precautionary one and is worth 3.6 billion Euros. It accounts for about 300% of the quota Romania has at the IMF. The precautionary accord is accompanied by a similar agreement, worth 1.4 billion Euros signed with the European Commission and a credit line granted by the World Bank, worth 400 million Euros.




Some of the commitments made by the Romanian authorities, whose compliance has been only partially observed or even postponed, are related to privatizations, the promotion of managers from the private sector to state-owned companies and the budget deficit. Another interesting issue on the agenda of the talks refers to the authorities’ intention to bring salaries of public sector employees back to the level prior to July 2010 when they were slashed by 25%, as an austerity measure. The current context is a difficult one because of the elections to be held this year, coupled with worsening economic prospects.




It remains to be seen to what extent the Romanian authorities will manage to prove to the IMF officials that such a measure is sustainable. The IMF experts estimate that this year Romania will register an economic growth rate of 1.5% of the GDP, below initial estimates, because of the anticipated recession in the Euro zone and the downturn on international markets. Another focal point on the agenda of the economic and financial mission is the commitment made by the Romanian government to increase by 5% electricity prices by late June, for both industrial and private consumers. As regards the price of natural gas, the talks are focused on a phased out timetable, spanning several years, until the prices are liberalized.




Under the agreement signed with the IMF, Romania should restructure the sector of state-owned companies and to carry out a comprehensive reform of the healthcare system. Early this month, Economy Minister, Lucian Bode, said the government wanted to discuss again with the IMF the list of state-owned companies which will be privatized or traded on the stock exchange. The list includes Oltchim Ramnicu Valcea, Cupru Min Abrud, Transgaz, Romgaz, Nuclearelectrica and Hidroelectrica.

Photo: pixabay.com
Today in the News Tuesday, 29 April 2025

Talks on magistrates’ retirement continue

The Romanian Senate has postponed by two weeks a debate on the bill amending the retirement age for magistrates and how their pensions are...

Talks on magistrates’ retirement continue
Photo: agentia media a armatei
Today in the News Tuesday, 29 April 2025

Strengthening readiness in the field of defence

In an increasingly complex geopolitical context, Romania is focusing its efforts on strengthening its defence capacity at national level, but also in...

Strengthening readiness in the field of defence
Photo: ©European Union, 2017, Source: EC - Audiovisual Service Photographer: Mauro Bottaro
Today in the News Monday, 28 April 2025

The 20th anniversary of a historic treaty

It’s been 20 years since Romania signed its EU accession treaty, which allowed it to officially become a member of the European Union on 1st...

The 20th anniversary of a historic treaty
Credits: Facebook/Sorin Grindeanu
Today in the News Monday, 28 April 2025

Additional bridges over Prut River

Romania and the Republic of Moldova will soon be connected by a new bridge over the Prut. The new bridge, for which construction works started last...

Additional bridges over Prut River
Today in the News Friday, 25 April 2025

The Environment Fund Administration gets record budget

The Environment Fund Administration this year received from the government a record budget for investments, worth over 3.2 billion euros. The money...

The Environment Fund Administration gets record budget
Today in the News Friday, 25 April 2025

Measures for the Romanian education

During Thursday’s meeting, the Romanian government discussed several laws related to education. They established the legal framework for...

Measures for the Romanian education
Today in the News Thursday, 24 April 2025

A new law on the magistrates’ pensions

There are several occupational categories in Romania whose employees are usually retiring under the age of 50 and whose pensions aren’t exclusively...

A new law on the magistrates’ pensions
Today in the News Thursday, 24 April 2025

Downward forecast revision from the World Bank

According to its latest report, the World Bank expects growth in developing economies in Europe and Central Asia to slow down to 2.5% in 2025-2026...

Downward forecast revision from the World Bank

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company