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July 2, 2022
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Voinea, Minister for Budget: No derogations were asked of IMF

The Minister-Delegate for Budget, Liviu Voinea, denied the fact that the Government had asked the International Monetary Fund for derogation, noting that Romania had reached all its set targets. ‘The Government ahs not asked the IMF for any derogation. We keep permanently in touch with them, but not with those on the Board. Romania meets all targets by the date when it goes before the Board’, Liviu Voinea noted for ziare.com. His statements followed shortly a document obtained by Mediafax and saying that the Government had missed over half of its commitments to the IMF, including the arrear target, and was asking for derogations from the financial institution so that the Board due to meet on June 26 could accept the successful conclusion of the agreement. The document says that, according to the letter of intent dispatched by the Government to the IMF this week, Romania has only met two of the five indicative targets set for the end of December 2012, missing the criterion regarding the performance of the net foreign assets of the National Bank of Romania, the one on the balance of the general consolidated budget and a third one referring to the arrears of the state budget. The indicative targets set for primary expenditure of the general consolidated budget, local authorities’ arrears, arrears of state-owned enterprises and the privatization of CFR Marfa. ‘I don’t know anything about that article, please ask the Mediafax people’, Liviu Voinea further said. Previously, the PM’s honorary adviser, Ionel Blanculescu, had noted that ‘it would be no embarrassment’ for Romania to ask for such derogations, that being ‘a standard procedure’.
CE Oltenia situation, re-considered
The Government considers a ‘re-consideration of steps’ in the case of CE Oltenia and is thinking about a joint venture with a private company or even majority privatisation with a strategic investor, according to the letter of intent sent to the IMF, PM Ponta having however noted in January that privatisation was out of the question. The privatisation of Oltenia Energy Complex was also considered earlier this year during the talks with the IMF, but Premier Victor Ponta at the time said a privatisation of the majority stock of Oltenia Energy Complex was out of the question as long as it was making profit, had private management and signed for USD 1 bn investment for Rovinari. He said that only 15 per cent of the shares would be listed on the stock exchange. The launching of the public offering for the 15 per cent of the company is supposed to happen by the end of October.
The Government has also started this year to check several people possessing big wealth, suspected of having exceeded the so-called ‘minimum accepted risk’ by not paying taxes and decided to turn to foreign specialists and IMF experts to train inspectors.
The checks were initiated after the Tax Authority had sent out voluntary compliance notices – says the letter of intent dated June 10, the Government sent to the IMF last week, before the last review of the agreement by the IMF Board and obtained by Mediafax, Romania has only met two of the five indicative targets set for the end of December 2012, missing the criterion regarding the performance of the net foreign assets of the National Bank of Romania, the one on the balance of the general consolidated budget and a third one referring to the arrears of the state budget. The indicative targets set for primary expenditure of the general consolidated budget, local authorities’ arrears, arrears of state-owned enterprises have also been missed. The main prerequisites for a successful completion of the agreement with the IMF are the payment of arrears by the local authorities and the privatisation of CFR Marfa, the sale having not been concluded by this time.

New resident representative of IMF in Romania to take office on July 1
The new representative of the International Monetary Fund (IMF) in Romania and Bulgaria, Guillermo Tolosa, will official take over his new responsibilities on July 1, the current resident representative, Tonny Lybek, made an announcement on Friday. ‘After four years, my tenure as resident representative in Romania and Bulgaria comes to an end. I’m glad to announce that my successor will be Guillermo Tolosa, who is about to take over on July 1, 2013’, showed the IMF release. Tolosa, born in Uruguay, is currently a resident representative of the IMF in Armenia, where he has been working with authorities on the financial support programme concluded between this country and the international financial institution.

 

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