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Romania's stand-by deal with IMF still uncertain – PM Ponta

February 11, 2014

Romanian PM Victor Ponta claims that President Traian Basescu still refuses to endorse the letter of intent drafted by the government under the agreement with the IMF, HotNews online service informs.

Operationally, Romania has no agreement with the Fund, Ponta concluded. Despite the optimistic release issued by the Fund last week about reaching an agreement at staff level, the smooth continuation of the stand-by deal remains in limbo.

Last week, Ponta said exactly the opposite – namely that Basescu would accept to endorse the letter once the car fuel tax hikes are removed from the text. Basescu would accept to keep the dispute over the car fuel taxation separate from the deal with the Fund, he has implied.

Nonetheless, Basescu hinted over the weekend that this was totally untrue. He refused however to openly say whether he was ready to greenlight the agreement with the Fund or not. The presidency looks forward to see the text of the letter and will comment afterward, Basescu has explained.

What is clear is that Basescu never said or implied that he was ready, in any way and under any circumstance, to accept the car fuel excise tax hike. On the opposite, Ponta explains that the hike is imminent since it is already included in the Fiscal Code.

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Source: IntelliNews - Weekly Reports

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