Senate Chairman Invites Ctrl Bk Head, Fin Min To Talks On Romania’s Economic Situation

Romanian Senate Chairman Mircea Geoana said in a press release Wednesday that he invited the country’s central bank governor and finance minister to talks with the Senate’s Standing Office on the country’s economic situation, in the fallout of recent negotiations with IMF experts.

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Geoana said he invited central bank governor Mugur Isarescu and Finance Minister Sebastian Vladescu for talks on Romania's economic situation and people's concern about potential tax hikes and layoffs on the rise.

Geoana also said in the press release that talks will focus on the country's economic situation, current risks and opportunities, as well as potential solutions for economic revival.

"Romania's economic situation is reason for concern among people and state institutions. The IMF mission in Romania, the economic and financial situation worldwide and their impact on Romania's economy, as well as potential tax hikes have all deepened people's mistrust in state institutions' measures and actions and the country's chance to get out of the economic crisis," the press release also read.

Geoana also stressed that talks are meant to keep people updated on recent events and measures and to clear out any economic and social aspects worrisome for the Romanian society.

The International Monetary Fund suggested Romania increase the flat tax rate to 20% from the current 16% and the value added tax to 24%, daily Gandul quoted people familiar with the talks as saying earlier Tuesday.

Vladescu on Tuesday said the Government is trying to keep taxes at current levels and stressed there are several options on the table in negotiations with IMF experts.

IMF experts announced, before the beginning of talks on the fourth review of the stand-by agreement, that Romania's economic growth forecast for this year was revised from 1.3% to 0.8%.

An IMF mission is in Bucharest between April 27 and May 7 for the fourth assessment of Romania's progress under a EUR20 billion IMF-led loan agreement signed last spring. Following the mission, the IMF will decide whether to disburse a fifth installment of EUR850 million to the eastern European country.

So far, Romania received around EUR9.2 billion from the IMF.

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