IMF intent letter: government will seek international consultancy companies to recruit new managers for state owned companies
This is a revolution in the way the positions were offered so far, quoted sources said. So far, these positions were attributed following negotiations in the government and none of the managers were liable for the weak performance of the companies they managed.
The new managers will have salaries correlated to their performance and will receive a free hand in terms of any restructuring ideas, sources said. Quoted sources said that the President was one of the main supporters of this idea of the IMF but parties were a bit reluctant in applying it.
Finance ministry Gheorghe Ialomitianu said that the government introduces a program to cut the state’s debts to the private sector, a program to cut spending in the budgetary system and to cut stocks companies accumulated. He said that the state owned companies will have to report on a quarterly and yearly basis.
If the government fails to privatize, or partially privatize, or restructure the state owned companies then the last option is to shut them down, Romania’s representative to the IMF Mihai Tanasescu said. He said that the IMF monitors and diagnoses about 150 state owned national and local companies.