Romania To Inform IMF On Monitored Public Cos

“During the program period, information will be provided to document that sanctions—decline in remuneration and dismissal of management according to Ordinances 37/2008 and 79/2008—are imposed if the budgets and company targets for restructuring are not observed,” states the Memorandum of Understanding between Romania and the IMF, published Wednesday.

During the second review of the stand-by agreement, after the monitoring system of the Ministry of Finance has been refined, quarterly indicative targets for 2010 will be established on the operating balance (earnings before interest and tax), net of subsidies, of the 30 largest enterprises by total expenditures (as of 2009).

Under the agreement, the Romanian Government will take additional measures in the monitoring of public enterprises to reduce arrears and staff spending.

Romania agreed late March with the IMF on a two-year stand-by agreement for EUR12.95 billion. Romania has borrowed a total EUR19.95 billion from the IMF, the European Union, the World Bank and the European Bank for Reconstruction and Development.

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