IMF displeased with Romania’s uniform pay law
Lybek said that the next disbursement of the IMF loan negotiated under a stand-by arrangement will depend on the amendment to the uniform pay law.
Officials of the Romanian Finance Ministry say the law has been agreed upon with the IMF and there would be no reasons to halt the third disbursement of the loan.
‘The IMF has voiced agreement over the uniform pay law for the public sector. Had the IMF not agreed, the Government would have not assumed responsibility for the law before Parliament,’ state secretary with the Finance Ministry Bogdan Dragoi told Agerpres on Thursday.
The disbursement of the 19.95-billion-euro loan agreed upon by the Romanian Government and the International Monetary Fund in a stand-by arrangement is made conditional upon the result of quarterly reviews conducted in Bucharest by IMF experts, as mentioned in the Stand-By Arrangement, the letter of intent and the Technical Memorandum related to the arrangement.
If the IMF meets its pledges to the IMF mentioned in the Stand-By Arrangement and if the uniform pay law becomes more transparent and easier to apply, Romania will receive SDR 1.40 billion in a third disbursement of the loan on March 15, 2010.
The third review of Romania meeting the performance criteria will be conducted in late 2009 and if these criteria are proved to have been met, the fourth disbursement, worth SDR 766, of the IMF loan would arrive in Romania on March 15, 2010.
The next reviews by IMF experts will be conducted at the end of the months of March, June, September and December 2010. If Romania manages to fully meet the performance criteria agreed upon under the Stand-By Arrangement, the remaining disbursements of the loan will follow on June 15, September 15 and December 15, 2010.
Their worth will be SDR 768 million, SDR 769 million and again SDR 769 million, respectively. The last disbursement, worth SDR 874 million, should arrive in Romania on March 15, 2011, provided that all the performance criteria have been met and the Government wants to exhaust the arrangement. After 1990, only one such arrangement between Romania and the IMF was carried through.