IMF Wants Romania To Monitor State Subsidized Cos – Econ Min

Videanu said Tuesday the Economy Ministry should inform IMF monthly on the companies’ monitoring.

 

Ministerial sources told MEDIAFAX last week that Romania’s Government will take supplementary measures to monitor the state-owned companies, in order to reduce the debts and keep the personnel expenses within approved limits, according to the budgetary surveillance model set up by the IMF a few years ago.

 

Through the Finance and the Labor Ministries, the government will keep a closer eye on the state-owned companies and their subsidiaries, in order to diminish the volume of debts and losses and to be certain that the personnel expenses will be kept within the limits established by their budgets.

 

Late March, Romania agreed with the International Monetary Fund, the European Union, the World Bank and the European Bank for Reconstruction and Development a EUR19.95 billion economic program, of which EUR12.95 billion in a two-year stand-by arrangement from the IMF. The first tranche, worth EUR5 billion, is expected to come from the IMF after the approval of its board.

 

The government is preparing a set of measures including, among others, the budget revision, the introduction of a lump-sum tax, the limiting of bonuses and indemnities in the public sector, and the freezing of public sector hiring.