Romania’s government has endorsed the Letter of Intent (LoI) drafted under the second review of the stand-by arrangement with the IMF and President Traian Basescu promised to endorse it under certain circumstances, Adevarul daily reported.
Basescu previously vetoed the first LoI drafted in December, invoking the government’s planned car fuel excise hike.
PM Victor Ponta informed about his agreement with Basescu on the critical issues in the LoI, announcing that the letter would be sent quickly to the IMF.
Basescu had previously promised to endorse the new LoI in case it does not mention the car fuel car excise [still likely to be enforced by the government as of April] or the government’s planned support for low-income bank debtors. The government is increasingly unlikely to go forward with the said plan to support low-income bank debtors, a plan initially backed by the central bank and not criticised by the IMF – but more recently, after more detailed analysis, seen as a debatable, unclear, complicated procedure likely to end in more benefits for banks than for bank debtors.
Related Articles
Non-performing loans hit historic low in CESEE, but early warning signs emerge, says EBRD
Non-performing loans (NPLs) in central, eastern and south-eastern Europe (CESEE) fell to their lowest levels since the global financial crisis in 2024, but early indicators suggest rising risks ... more
EC clears €200mn capital increase at Romanian state-owned CEC Bank
The European Commission has approved Romania’s planned €200mn capital increase for state-owned CEC Bank, allowing the country to proceed with strengthening the lender’s financial position, ... more
Austrian bank Addiko to enter Romanian market with consumer loans first
Addiko Bank, an Austrian financial institution specialising in the consumer and SME sector operating in Central and South-Eastern Europe (CSE), is preparing to launch operations in Romania with the ... more
Most Read
-
Putin to skip Rio BRICS summit over ICC warrant as Xi signals no-show
17 days ago
-
Turkey yet to prove rare earth deposit has suggested “giant” potential despite reported processing talks with China
10 months ago
-
Uproar in Mongolia as development bank reveals scale of risky loans and NPLs
3 years ago