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IMF Worried About Romania’s Govt Arrears – IMF Official

The International Monetary Fund is worried regarding Romania’s government arrears, which also affect the private sector and the country’s economy, Jeffrey Franks, IMF mission chief to Romania, said Saturday.
IMF Worried About Romania’s Govt Arrears – IMF Official
Adelina Dragomir
04 sept. 2010, 14:39, English

Arrears in the public sector affect not only the public sector, but the private sector as well, said Franks during a conference organized by the National Bank of Romania, which celebrates its 130th anniversary.

Romanian Finance Ministry Thursday decided to allot 1 billon lei (EUR1=RON4.2796) from the budget of the national health insurance fund to pay off a part of the arrears in the health sector.

Franks said in August that the IMF would release another EUR915 million of its EUR13 billion loan to Romania as soon as the government had fulfilled pre-conditions to reduce budget deficit, including a reduction of arrears.

„As a prior action, we intend to pay down RON1.9 billion in arrears in the health sector (the largest source of arrears),” the Romanian Government said in its additional letter of intent to the IMF.

Romania’s government arrears stood at RON2 billion at the end of June, almost double compared with the target agreed with the International Monetary Fund, of RON1.09 billion, according to an official document obtained by MEDIAFAX.