Romania, IMF Agree On Letter Of Intent For New Deal

05.07.2011 ZF English

Romanian authorities and the International Monetary Fund have reached an agreement on the Government's course of action outlined in the follow-up deal's letter of intent, people close to the matter told MEDIAFAX on Saturday.

President Traian Basescu met Saturday with the IMF delegation.

On Friday, the Government and IMF had not yet agreed on the state companies to be privatized or restructured, or the right time to reduce social security contribution rates.

People who attended the meeting said the negotiations had come to a halt and did not produce the letter of intent, which should have been drawn up Friday. The Government was willing to privatize almost none of the companies suggested by the IMF. Romanian authorities want to reduce the social security contribution rates as soon as possible, given the good tax collections in the first quarter, although this decision was to be announced later in the year, said the sources.

The IMF will present its first evaluation of the new deal on Monday.