News Column

Romanian PM Ponta still hopes President Basescu might endorse stand-by deal with IMF

February 17, 2014

The Romanian government will adopt on Wednesday, Feb 19, the Letter of Intent (LoI) drafted under the second quarterly review of the stand-by agreement with the IMF and will submit it to President Traian Basescu for endorsement, PM Victor Ponta announced as quoted by Adevarul daily.

Ponta explained that he has continued discussions with Basescu and assured him that the support scheme for low-income bank debtors is not part of the letter. As we reported, Basescu has fiercely criticised the scheme, reportedly aimed at helping the ruling coalition get more funds before the European and presidential elections.

The dispute between Basescu and Ponta prevented the smooth continuation of Romania's stand-by deal with the IMF, sealed in September. In December, the president vetoed the LoI drafted under the first quarterly review invoking the government's plans for higher car fuel excise taxes. There is no way to stop the government hike car fuel taxation, Basescu finally admitted – while objecting to the executive's plan to help low-income bank debtors with public money under a scheme equally complicated and inefficient.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: IntelliNews - Weekly Reports

Story Tools