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.


Warning: Trying to access array offset on null in /home/web/rri.ro/public/wp-content/themes/rri/template-parts/content.php on line 53
A New Assessment Mission in Bucharest
A New Assessment Mission in Bucharest


Warning: Trying to access array offset on null in /home/web/rri.ro/public/wp-content/themes/rri/template-parts/content.php on line 98
, 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.

Finance Minister Tánczos Barna (Photo: gov.ro)
Today in the News Friday, 04 April 2025

Aid for companies affected by US tariffs

Romania, just like other European economies, is preparing for the new tariffs announced by the Trump administration.   The government in...

Aid for companies affected by US tariffs
Meeting of the defence minister Angel Tîlvar and the NATO secretary general, Mark Rutte
Today in the News Friday, 04 April 2025

Meetings on defence

  The international hysteria about the US abandoning NATO is unwarranted, the US Secretary of State Marco Rubio told the foreign ministers of...

Meetings on defence
Photo: Paul Teysen / unsplash.com
Today in the News Thursday, 03 April 2025

New US Customs Duties

The US president Donald Trump has made a decision, experts predicted long ago, namely new tariffs on all imports to US. In a speech delivered at the...

New US Customs Duties
Ilie Bolojan la Conferința „
Today in the News Thursday, 03 April 2025

Romania, towards the OECD

Romania is on track to complete all the technical analyses for joining the OECD in the next twelve months or so. The announcement was made by the...

Romania, towards the OECD
Today in the News Wednesday, 02 April 2025

EU reacts to US tariffs

European Commission President Ursula von der Leyen says Brussels has prepared “a strong plan” containing “firm countermeasures” to counter...

EU reacts to US tariffs
Today in the News Wednesday, 02 April 2025

Romania is getting ready for elections

Romania had in 2024, like in no other year in three and a half decades since it transitioned to democracy, four rounds of elections – local,...

Romania is getting ready for elections
Today in the News Tuesday, 01 April 2025

Romania marks one year since joining Schengen

Romania marks one year since partial accession to the Schengen area.   Romania marks one year since joining Schengen with air and sea borders, a...

Romania marks one year since joining Schengen
Today in the News Tuesday, 01 April 2025

Sea Shield Exercise

  “Sea Shield 25”, the largest multinational training exercise organised this year by the Romanian Navy, has begun in Constanta. A roughly...

Sea Shield Exercise

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