EC, WB Premise Loan Tranches To Romania On Wage Law Adoption – Sources

„The International Monetary Fund showed more leniency, as they’ve negotiated a series of conditions, with the main issue being the 2010 budget. However, the Commission and the World Bank target these particular structural reforms and will not release new tranches unless the laws on salaries, pensions and fiscal responsibility are approved,” the sources said.

They noted the Romanian authorities are searching for a legal solution to send the 2010 draft budget to parliament as soon as possible, given that the country’s caretaker government is unable to propose new acts.

Romania’s minority government has collapsed early October after failing a no-confidence vote in parliament. Designated prime minister Lucian Croitoru is expected to seek parliament’s approval for a new Cabinet November 4, but his chances to receive endorsement are slim.

Back in the spring, Romania obtained EUR20 billion in foreign money from the IMF and other international lenders to cushion the impact of the recession.

In exchange for the support, Romania pledged to implement a series of measures, including passing a new law on fiscal responsibility by November 30, as well as the laws on public salaries and pensions by October 30 and December 31, respectively.

In addition, the country must adopt the 2010 budget by the end of the year.