Romanian President Urges Speedy State Budget Adoption To Unlock International Bailout Money

Basesu said in his letter the country’s new government should be given a confidence vote by December 23 and the government should submit the draft state budget to Parliament for approval between December 26 and 29.

Parliament will hold hearings of proposed ministers in special commissions all day Tuesday and a confidence vote on the proposed government and its governing program Wednesday, Chamber of Deputies vice-president Ludovic Orban told MEDIAFAX Monday.

The head of state wrote the Parliament should debate and adopt the 2010 state budget and social security budget, which should be published in the country’s Official Journal by January 19, 2010, when teams of EU, IMF and World Bank experts are to return to Romania.

„I realize the Parliament is free to set its own working calendar,” Basescu wrote, adding that adopting the state budget by mid-January will allow the IMF board to convene and disburse further loan tranches in February.

Prime Minister-designate Emil Boc said last week the Parliament will approve next year’s state budget early January in an extraordinary meeting.

Also last week, Basescu said Romania might receive two new tranches of the rescue loan on February 17 if it adopts the 2010 budget by mid-January. Basescu said the Government and Parliament must observe a tight schedule in order to receive the two disbursements, which amount to EUR2.3 billion.

Early 2009, the IMF has lent Romania EUR13 billion as part of a larger bailout package which includes funds from the EU, the World Bank and other financial organizations to cushion the effects of a deepening recession.

Romania has received so far around EUR7 billion in two tranches from the IMF, and was scheduled to get another EUR1.5 billion by year-end. Under the loan agreement, a fourth disbursement is due in March 2010.

In November, the IMF decided to delay its third disbursement to Romania due to political turmoil, as the Eastern European country remained without a government after Prime Minister Emil Boc’s Cabinet lost a confidence vote in Parliament.