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October 21, 2021

Privatisation and foreign financing at centre of agreement with IMF-EC

According to National Bank of Romania (BNR) Governor Mugur Isarescu, privatising state-owned companies and financing the deficit mainly by tapping foreign sources are the main goals of the future agreement with the IMF even if they will not be explicitly mentioned in the new agreement, Mediafax informs. “Isarescu explained that one of the proposals that the European Commission in particular seems to insist on is creating a highly trained team within the Finance Ministry, one that would deal exclusively with financing the deficit and refinancing the public debt. This team would negotiate with the banks, organize road-shows, discuss with investors and prepare the issuance of government bonds,” the quoted sources said.
The BNR official pointed out that the European Commission in particular insists on continuous and long-term financing from international markets, while privatisations are the IMF’s priority.

BNR Governor also told commercial banks’ treasurers that political parties will find it hard to assume the privatisation of Romgaz company, in the context of the public debate sparked by increasing petrol prices after the privatisation of Petrom, bank sources announced. According to the sources, Isarescu said he does not see how parties could find the political will to support the privatisation of Romgaz, as long as the ongoing public debate focuses on how fuel prices jumped after the privatisation of oil companies.

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