Romania Vows Before IMF To Slash Heating Aid Before September

05.15.2011 By Bostan Radu

Romania's government committed in the letter of intent to the International Monetary Fund to eliminate the thermal energy subsidy by the end of August at the latest, and direct such aid only to disadvantaged categories.

"By the end of August, we will improve legislation so that heating subsidies will be granted only to vulnerable persons, resulting in significant savings for the budget," says the document obtained by MEDIAFAX.

On Tuesday, MEDIAFAX reported that the Government had pledged to eliminate the thermal energy subsidy in the near future, possibly increase household heating bills by up to 60% by the end of the year, depending on the mayoralties' capacity to cover the difference.

The heating subsidy is currently granted through a combination of funding from the state budget and local budgets.

Jeffrey Franks, the head of the IMF mission to Romania, told MEDIAFAX the government plans to eliminate the subsidy granted from a central level by the end of the year, with the exception of social cases, who may even receive an increase.

Government spokeswoman Ioana Muntean said Wednesday evening that the ministries of Finance, Interior and Labor have been tasked to come up with options regarding the heating subsidy.