Romanian govt fails to endorse letter of intent for IMF amid political deadlock

By bne IntelliNews February 20, 2014

Romania’s government failed to endorse on Wednesday, Feb 19, the Letter of Intent (LoI) drafted under the second review of the stand-by arrangement with the IMF after finance minister Daniel​ Chitoiu resigned, Adevarul daily reported.

PM Victor Ponta previously announced that the LoI should be sealed this week. The letter needs the endorsement of the president, who already warned that he would be extremely careful with the government’s debatable formulations. President Traian Basescu has already blocked the LoI drafted under the first review of the stand-by deal, earlier in December.

Basescu has confirmed the resignation of finance minister Chitoiu and of economy minister Andrei Gerea submitted earlier last week but the resignations have not been proceeded yet and remained in limbo amid political negotiations.

PM Victor Ponta – who is also the president of the seniour ruling party PSD, and Crin Antonescu - the head of the junior coalition partner PNL that coordinates the two ministries, have discussed the two replacements before the government meeting but failed to reach an agreement on them.

PNL has refused even to nominate interim ministers and Ponta had to make own appointments. Ponta himself will serve as an interim finance minister and the head of the energy department, Constantin Nita [PSD], will serve as an economy minister.

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