The IMF and the Government are today presenting the results of the first review of the new precautionary arrangement with the IMF, after last week the two parties had yet to reach final agreement on the privatisation of state-held companies and on the possibility of reducing social security contributions (CAS) starting in the second half of the year.
The IMF mission headed by Jeffrey Franks started on April 26th and ends tomorrow, May 10th.
After talks at the Cotroceni Palace between the Fund's delegation and president Traian Băsescu, the head of state explained on Saturday evening in a press conference, what the results of the talks were. Today is expected to see if not the letter of intent, at least part of the commitments to be included in the letter.
The social contributions cut will not occur this year, suggested the head of state, because it is not possible. As for state-held companies, they will report results directly to the Finance Ministry.
Data of the Finance Ministry revealed that in April revenues of the general consolidated budget rose by 10.2% in the first quarter against the similar period of 2010, largely thanks to the increase in VAT revenues and in excise revenues, with spending climbing by just 1.3%. Investments are the reason for this growth.
The general consolidated budget ended the first quarter with a 1.26 billion-euro deficit (1% of GDP), according to data published by the Finance Ministry, while the deficit agreed with the IMF is 4.4% of GDP.
Encouraged by these data, the Government examined the possibility of cutting social securities by a few percentage points as of the second half of the year, and at the end of April, finance minister Gheorghe Ialomiţianu said that, although it would be difficult, the Government would try to persuade the IMF that the measure is a right one.
On Saturday the president
