Just a few days before the conclusion of the visit of the IMF delegation headed by Neven Mates, the Romanian authorities cannot say for certain whether they are to get the signature of the IMF official on the memorandum of understanding required for closing a new loan agreement.
Whereas the Romanian authorities have been constantly reassuring people that the memo was sure to be discussed by the IMF Board this month, PM Adrian Nastase at the end of last week said, “a new stand-by agreement could be, theoretically, signed by the end of October, in case the talks between the Romanian authorities and the institution officials are completed in the next 10 days.” The meeting between Nastase and Neven Mates, scheduled for last Friday, was cancelled because the economic ministries were not finished with the talks, which left no basis for negotiations. A new meeting of the two had not been scheduled by last night yet.
The main topics still not talked out are the arrears situation, the salary policy in the regies autonomes and national companies, as well as privatisation. The secretary general of the governing party Cozmin Gusa said the Government would assess the progress of the talks with the International Monetary Fund on Thursday.
Official sources claim Neven Mates will leave Bucharest this weekend, with or without the memorandum of understanding, which he has allegedly carried in his pocket since June, says Finance minister Mihai Tanasescu.
Tanasescu briefed the leadership of the ruling party on the progress of the negotiations with the IMF over the signing of the memo of understanding. He declined making any statement on the issue at hand. The directors in the Finance Ministry are still working on drafting measures to curb arrears that should persuade the IMF delegation. At the same time, the “conditionalities” that Romania can afford to assume in terms of public finance through the memo of understanding are being analysed.
The talks with the IMF are practically focussed on the manners in which the Government is to turn into effect the commitments undertaken by the memo of understanding.
PSD (Social Democratic Party) secretary general Cozmin Gusa says there are certain elements making the Government claim the memo will be signed “as soon as possible” so that it could be presented to the IMF Board this fall. Gusa did not volunteer further details but said the document would include only those “commitments” the Government is capable of keeping. “The essential thing is our commitment that every element in the memo of understanding could be turned into effect. We have concrete elements,” Gusa said, without detailing.