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Jeffrey Franks: Romania hasn’t met the end-September performance criteria

Romania will have to request a new derogation for the failure to fulfil the conditionality regarding the arrears, International Monetary Fund (IMF) head of mission for Romania Jeffrey Franks said on Friday when coming out of the meeting he had with Romanian National Bank (BNR) Governor Mugur Isarescu.

Romania will have to request a new derogation for the failure to fulfil the conditionality regarding the arrears, because the target in this field will be missed again, the IMF head of mission explained. Since the beginning of the programme with Romania, there has been a target referring to the arrear removal, Jeffrey Franks underlined, and since the beginning there have been problems in this field. We shall carry on our work with the authorities and we shall look for solutions to reduce the arrears in the future, the head of the IMF mission for Romania added.End-June, Romanian government arrears stood at RON2 billion, double the half-year target agreed with the IMF. The country must bring its government arrears down to RON480 million by year-end and eliminate them altogether by the end of the IMF program in 2011.As for the possibility of reducing social contributions, Jeffrey Franks said it was premature to predict what can be and what cannot be introduced in the budget for 2011. We mention Romania has already received three derogations for the non-fulfillment of the arrear target.

Sources said the IMF conditioned the next installment to the payment of state's debts, which amount to 1.5 billion lei

The payment of the state's debts to the private sector is a condition imposed to the state which needs to be complied with before the IMF makes any new payments, governmental sources declared for Mediafax. According to data presented by daily financial newspaper Ziarul Financiar, the value of the state's debts to the private sector amount to 1.5 billionlei. Romania's representative to the IMF, Mihai Tanasescu declared recently that it will be very hard for him to argue for the sixth time a delay. Even though the government paid 2 billion lei of its debt to private companies, new unpaid bills sprang up that were no registered and not considered. This situation involves the Health sector, Transports and other infrastructure projects at local authorities, sources declared for Mediafax. According to them the IMF will urge the government to pay some of them, in order to release the next installment. The evaluation mission of the IMF insists that the government should pay its debts to the private sector at least those at a central level.

Sursa: http://www.actmedia.eu

Tags: government arrears romania jeffrey franks bnr

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