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.

Related Articles

Romanian president rejects justice minister’s request to dismiss head of anti-corruption body

Romanian President Klaus Iohannis said on April 16 he is rejecting a request from the justice minister to dismiss the head of the National Anticorruption Directorate (DNA), Laura Codruta Kovesi. ... more

ArcelorMittal proposes to divest assets in Czech Republic, Macedonia and Romania

International steel and mining company ArcelorMittal said on April 13 it has proposed a divestment package to the European Commission in a bid to obtain approval for its planned acquisition of ... more

Romania’s Restart Energy raised €30mn via ICO

Romanian electricity and gas supplier Restart Energy raised €30mn in cryptocurrencies by issuing 400mn MWAT tokens in an Initial Cryptocurrency Issue (OCO) aimed at financing a blockchain-based ... more