The IMF agreement 'depends on three laws'

President Traian Băsescu stated Tuesday, at Cotroceni Palace after talks with government parties, that, in order to continue the IMF agreement, the pension bill, the salary bill, and the state budget for 2011 had to pass.

Traian Băsescu added that, after the talks he concluded that Romania would not miss the IMF and EU tranche.

This means 1.2 billion euro from the European Union to cover the budget deficit and one more billion euro from the IMF for the National Bank of Romania.

The president also said that he managed to include in the letter of intent with the IMF, WB and EU an arrangement for investment money to be received in the first two quarters of 2011.

'Up until now, we received the investment money in the 3rd and 4th quarters, thus, budget deficits were adjusted with investment money,' asserted Traian Băsescu.

Traian Băsescu stated he discussed the matter with coalition parties to immediately start assigning priority projects.

'Acquisition procedures must begin immediately, so that, by January the contracts will already be signed,'the president added.

The chief of state also talked about a new agreement with the IMF, World Bank and EU, in 2011.

'We will begin negotiations for a new agreement with the IMF, WB and EU in January, thus, in case Romania is economically stable, the agreement should come into force as a follow-up, that is, if the current agreement is fulfilled,'said Traian Băsescu.

Laws voted 'by mistake' were sent back to the Parliament

President Traian Băsescu announced that he would send back to Parliament the bills for lowering VAT for food to 5%, and exempt from income taxing all pensions below 2000 Romanian Lei.

'I will send back to Parliament both bills, the famous laws voted by mistake.

'Yes, I will send them back to Parliament to be re-examined and modified to agree with Romania’s international agreements and meet the need for fiscal predictability,'asserted Traian Băsescu.

As for Ordinance 50, the president said he hoped to be overhauled and enacted.

Traian Băsescu also said that Ordinance 50 does not retroactively apply, because it acts upon the current bank-client relationship.

He added that things must be balanced, for clients must pay original debts, since the credits were not bank money, but depositor money, however transferring liabilities to clients must also be avoided.

'I support not paying commissions in the case of anticipation,' he further stated.

Translated by: Ciocănel Tudor
MA Student, MTTLC, Bucharest University