BNR Becomes Arrears Watchdog: It Has to Monitor and Audit Finance Ministry Pans to Reduce Debt

05.04.2011 ZF English

Romania's central bank is required to monitor and audit the application of the Finance Ministry's strategic plans to reduce arrears incurred by the local authorities and by state-controlled companies, which continue to be the most sensitive problem of the economy and the biggest hurdle to reforming the public sector.

The provision is included in the National Reform Programme for 2011-2013, which was approved by the Government at the end of last week. The program transposes the objectives of the Europe 2020 strategy into national legislation and includes, among other things, measures aimed at economic growth, ensuring stability of the financial sector and the workforce.

In the course of this year, formal targets for reducing arrears both of local authorities and of state-controlled companies are required to be monitored on a quarterly basis.