Authorities fret over IMF criteria

One month before the first deadline of the stand-by agreement concluded with the International Monetary Fund, the authorities are fretting over the performance criteria that have to be met for the next loan installment to be released.

Meanwhile, the International Monetary Fund has sent its own expert to the Finance Ministry to monitor every move. Stephane Cosse, IMF resident representative to Bucharest, has practically set up a second office at the Finance Ministry, beside the one at the National Bank of Romania.

After barely managing to meet on time the preconditions necessary for signing the memorandum of understanding, the Government is now trying to “take cover” behind all kinds of “measures and mechanisms,” which need much more time to show results.

The International Monetary Fund wad duped in the case of the previous five agreements, therefore it is watching very carefully the Executive and the main ministries involved in achieving the economic programme stipulated in the memorandum signed last month, namely the Industry Ministry and the Finance Ministry.

The two ministries must report periodically to the Fund’s representatives about meeting the stipulated parametres.

The Industry Ministry is responsible with the arrears issue and announced more layoffs in its subordinated state-owned enterprises.

The Finance Ministry is also waging a battle against arrears, as it will be anointed the guardian of Termoelectrica’s budget by an Emergency Ordinance. Termoelectrica is deemed as the node of arrears in the Romanian economy.

While the level of arrears may be confined to the ceilings agreed upon with the International Monetary Fund, according to Finance Ministry officials, the debts to the social security budget keep going up, just like the debts accumulated between various economic agents.