Romanian Govt To Approve IMF Letter In Tuesday Meeting

The Government will also approve the additional memorandum of understanding with the European Union.

The letter, presented by MEDIAFAX in November, said, among other things, that the Government pledged to continue the layoffs in the public sector next year, as well as keep cutting expenses, to reduce the budget deficit to 3% of GDP by 2012. Romania agreed to limit changes to its taxation system over the next period to ensure fiscal stability and potential tax cuts won't be considered until the economy grows again.

The Government plans to limit in-hospital treatment next year to 10% of its 2010 level and reduce the price markup paid for drugs used in treating cancer, diabetes, HIV/AIDS, TBC to 1.5% for retail and 4% for wholesale purchases.

Romania and the IMF last year signed a EUR13 billion loan agreement, part of a larger EUR20 billion aid package that includes funds from the European Commission, the World Bank and other foreign lenders.

Late October, joint teams from the IMF and EU visited Romania to assess the country's progress under the agreement and decide on whether to disburse new aid.

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