IMF Gives Us a Delay with the Arrears and Praises Us

At the first evaluation of the agreement with Romania, the International Monetary Fund (IMF) approved the derogation request from the authorities in Bucharest for not keeping to schedule, at 30th of June, the quantity criterion regarding the debt ceiling of the private companies and of the social insurances to the state budget. IMF pointed out that the authorities deal with the historical problems of the budgetary arrears and with the lack of constraints concerning the payment of the taxes by the state enterprises. For the arrears, there have been some measures against the private companies, including enforcement and bankruptcy, says the IMF communiqué.

REFORMS. The IMF director’s deputy, Agustin Carstens, stated, after the meeting of the leading board, that the economical programme of the authorities favors safe macro-economical strategies, which are also supported by the positive evolution of the economy. The IMF official showed that the programme includes measure of strengthening the financial discipline in state companies, by adjusting the energetic prices and leveling the salary increase, as well as by the ample structural reforms, which are necessary for the EU adherence.

ADVISES. "In order not to jeopardize reaching the budgetary deficit target planned for 2005, the impact of decreasing the taxes for the incomes should be carefully supervised, and collecting the incomes should be improved", said Carstens. He stated that the measures of decreasing the costs, and especially the grants, are welcomed.

DISMISSALS

Regarding the state companies, the Fund believes that the units in the areas of mining and railways will have to limit their activity, going for some programmes that include supporting the dismissed employees in order for them to be re-qualified and re-employed. The privatization programme will continue, especially focusing on the energetic sector. The essential elements for strengthening the financial states of the companies in this area are the continuation of the tariffs decrease for electrical current and thermal energy depending on the costs, as well as the increase of the gas price in order to reach the one of the imported gas. "In 2004, the authorities have taken important measures for improving the business environment, including efforts for the fight against corruption, and the reform of the judicial system. In the same way, the Work Code is to be revised next year in order to increase the flexibility of the work market", also said Carstens.