IMF, still sympathetic

The International Monetary Fund is generally content with the development of the stand-by agreement it signed with Romania, partially due to the fact that the programme is not currently facing any difficulties Romanian authorities cannot find a solution to, sources close to IMF told Ziarul Financiar.

A mission of FMI experts headed by chief-negotiator Emmanuel Zervoudakis is expected to arrive at the end of August in Bucharest in order to tackle the stage of the agreement and especially the budget rectification.

In case everything should go well during negotiations, the International Monetary Fund may release the third tranche of the loan. “Certainly, banking system reorganisation and pension system reform will be hot topics of discussion,” the above quoted sources say.

The fact that Romanian authorities delayed the moment Banca Agricola is to be put out for privatisation, as well as the delay in the implementation of a viable pensions system, continue to dissatisfy International Monetary Fund officials.

“The manner in which Labour and Social Protection Ministry understands to manage the social insurance system is far from not putting significant pressures on the budgetary deficit. On the contrary, we may say that, at this point, the budgetary burden shifted from interests on domestic public debt to pensions system,” the quoted sources added.

At the same time, it seems that IMF experts are not quite pleased with the way Finance Ministry and NBR (National Bank of Romania) managed to calm down inter-banking and T-bonds interests.