Romanian president endorses govt's letter of intent under IMF stand-by deal

By bne IntelliNews March 6, 2014

Romania’s President Traian Basescu has endorsed the letter of intent [LoI] drafted by the government under the second review of the stand-by arrangement [SBA] with the IMF in early February, Ziarul Financiar daily reported quoting the president as saying.

This unblocks the SBA with the IMF since the president’s veto on the first quarterly review completed at the end of last year put a question mark over the smooth continuation of the arrangement with the Fund.

Having a valid SBA with the IMF is particularly important ahead of the European and presidential elections this year, after the leftist senior ruling party gained full control over the executive and might consider social measures with impact on the fiscal balance in order to maximise its performance during the coming ballots.

Back in December, the president objected the government’s plans for higher car fuel excise taxes and for a broader rise in taxation. Later in 2014, Basescu objected also the government’s plans to help, from public funds and under an extremely controversial system, the low-income individual bank debtors.

Related Articles

Romania’s Hidroconstructia starts overseas push with $115mn Jordan contract

Romanian civil engineering company Hidroconstructia has won a $115mn contract with Jordan’s Arab Potash Company, the world’s eighth largest potash producer. Hidroconstructia was founded in ... more

Romanian low cost carrier Blue Air reports 70% hike in passenger numbers

Passenger traffic of Romanian low-cost carrier Blue Air increased 70% y/y to 5mn last year, News.ro reported on January 21. The hike was supported by the increase in internal routes ... more

Romania’s Banca Transilvania becomes shareholder in Moldova’s Victoriabank

Romania’s Banca Transilvania (BT) has become a shareholder of Victoriabank, the third largest bank in the Republic of Moldova, with a total participation of over 66% alongside the European Bank for ... more

Dismiss