RRI Live!

Listen to Radio Romania International Live

Romania’s agreement with the IMF, on schedule

The International Monetary Fund has approved the first and second assessment of its stand-by agreement signed with Romania last autumn.

Romania’s agreement with the IMF, on schedule
Romania’s agreement with the IMF, on schedule

, 27.03.2014, 13:05

The International Monetary Fund board on Wednesday approved its first and second assessment of an agreement signed with Romania. The Fund will thus make another almost 440 million euros available to Romania, on top of a first installment of 210 million. The total value of the agreement stands at 4 billion euros, which the Romanian authorities say they don’t plan on using, as the agreement is only meant to protect Romania against possible shocks on international markets and help reduce financing costs.



Wednesday’s decision follows an IMF mission to Bucharest at the beginning of February, when the head of the IMF delegation, Andrea Schaechter said Romania had met all established requirements with the exception of the reduction in the debts of state-owned companies in the last quarter of 2013. In response, the Romanian government pledged to cover the debts of railways and road companies in part or in full and declare insolvent or even close down other smaller companies with big losses and debts.



According to the IMF’s First Deputy Managing Director and acting chairman of the board, David Lipton, Romania has made progress under the stand-by agreement, but its economy and finances are still vulnerable to shocks. He says a firm implementation of the agreed programme is essential for maintaining the country’s macro-economic stability in this election year. Lipton believes the budget deficit target for 2014 can still be adjusted and calls for a better absorption of European funds. He recommended Romania to focus on better tax collection and implementing a spending control system.



As far as the fiscal measures are concerned, the government has pledged to assess the efficiency of a temporary VAT cut for bread and bakery products to 9%. The government will also draw up a new system for taxation and evaluation of property and reduce social contributions in the second part of the year.



The fact that two separated assessment reports were discussed at the same time is not unusual. In Romania’s case, this was the result of president Traian Basescu’s refusal to sign the government’s letter of intent because of its provision on introducing an additional excise duty on fuel. Prime Minister Victor Ponta says the new excise duty will be applied as of April 1st, although fiscal measures will be taken to retain the competitiveness of Romanian road carriers and combat unfair competition.

Signing of the protocol (foto:
Today in the News Friday, 22 November 2024

Transition program towards F-35, launched

The Romanian Air Force’s transition program to 5th generation aircraft has been launched.   Romania’s decision to acquire advanced fighter...

Transition program towards F-35, launched
Energy (foto: EdWhiteImages / pixabay.com)
Today in the News Friday, 22 November 2024

The National Energy Strategy, adopted

Using local resources, reducing imports and making massive investments in production capacity are important elements of the new National Energy...

The National Energy Strategy, adopted
European Commission (photo: © European Union - Source: EC - Audiovisual Service / Photographer: Christophe Licoppe)
Today in the News Thursday, 21 November 2024

Political agreement on the new European Commission

    The leaders of the three major political groups in the European Parliament have given the green light to the members of the next...

Political agreement on the new European Commission
Photo: aep.ro
Today in the News Thursday, 21 November 2024

13 for Romania

    In Romania, presidential elections usually spark the greatest interest and emotions. Even more so this year, when the two rounds of the...

13 for Romania
Today in the News Wednesday, 20 November 2024

Romania’s natural gas, available for trading

On Tuesday, the Romanian company Romgaz launched its first issue of bonds on the Bucharest Stock Exchange, worth 500 million EUR. Romgaz is the...

Romania’s natural gas, available for trading
Today in the News Tuesday, 19 November 2024

Romania ahead of the presidential election

Next month, President Klaus Iohannis will end his second and last five-year term in office according to the Romanian Constitution. The so-called...

Romania ahead of the presidential election
Today in the News Tuesday, 19 November 2024

Romania’s Prime Minister on a visit to Brussels

NATO welcomes Romania’s continuous efforts and its significant contribution to strengthening the Alliance and Euro-Atlantic security, NATO...

Romania’s Prime Minister on a visit to Brussels
Today in the News Monday, 18 November 2024

Downward forecast from the European Commission

Romania’s economic growth estimate has been recalculated by the European Commission (EC), at a value well below the initially established...

Downward forecast from the European Commission

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