Two months ago, Romanian government collapsed in a Parliamentary no-confidence vote, which offset a political crisis that is already spilling over the economy. The national currency was put under extreme pressure, minimized by central bank’s repeated interventions in the FX market, while the political uncertainty hands over BSE stocks.
“We still have to determine the time zero”
An IMF mission will visit Romania today to discuss the 2010 budget plan together with the European Commission, Finance Ministry officials said. The country is very likely to ask its lenders to extend deadlines depending on the new data.
“It will be a short mission, of 1, 2 or 3 days to complete the 2010 budget plan. There is a slight difference between us (IMF), Commission and authorities… We must clarify the time zero so whoever is in charge takes into account certain public policies. There is a small difference regarding the exposure on revenues, and authorities will hammer out the final points on certain indicators”, Romania’s IMF representative, Mihai Tanasasescu said.
“Romanian authorities may ask IMF to extend deadlines”, he said when asked whether the country was likely to ask for new extensions, as arrears have exceeded the level agreed with the International Monetary Fund both in second and third quarter, and pension law must be adopted by December 31.
Notwithstanding the caretaker government’s permission to proceed with the 2010 budget plan in the Parliament, economists say the chances of being passed before the end of the month are low.
Romania is not at risk of not meeting public sector payments, Tanasescu continued, should the IMF fail to disburse the third tranche of the loan this year, since “the Ministry of Finance has probably attracted the amounts it needed beforehand”.
IMF representative to Romania, Tony Lybek said the International M
