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IMF Says Romania Should Cut Red Tape Around Heating Subsidies – Minister

Officials of the International Monetary Fund have recommended Romania to adopt a simplified scheme for heating subsidies and eliminate bureaucracy for this type of aid, Labor Minister Sebastian Lazaroiu said Wednesday after talks with the IMF delegation.
IMF Says Romania Should Cut Red Tape Around Heating Subsidies – Minister
Oana Gavrila
27 iul. 2011, 12:35, English

Lazaroiu said authorities presented their plans on the heating aid scheme and the IMF recommended that it should be as simple as possible and Romania should cut as much as possible of the bureaucracy involved.

„Their recommendation was to cut bureaucracy as much as possible. We’re seeking to focus strictly on vulnerable consumers,” said the minister.

A joint mission of the International Monetary Fund, European Commission and World Bank is in Romania until August 1 to assess the country’s half-year results under a precautionary stand-by loan agreement.

Under the agreement, Romania has committed to eliminate heating subsidies by the end of August at the latest and direct such aid only to disadvantaged categories.

The move may lead to a 60% increase in household heating bills by the end of the year, depending on local authorities’ capacity to cover the difference. The heating subsidy is currently granted through a combination of funding from the state budget and local budgets.