The new agreement Romania will sign with the IMF, European Commission and the World Bank will be for two years, Peter Harrold, World Bank Romania director declared. Harrold said that the agreement with the WB will be similar as the one already signed.
The opinion of the international institutions is that the agreement should be signed for a period of two years. If the length of the agreement will exceed the 2012 electoral year, it will offer confidence to financial markets.
World Bank has a similar agreement to the precautionary one but this is for future budgetary problems. Romania has budgetary problems now, so the program will not be a precautionary one but it will be like the current one, the official said. He said that Romania is well financed on the foreign currency and this is why the country needs a preventive agreement with the IMF, an institution which finances foreign currency reserves.
He said that the last installment from the current loan will be included in the future program, worth 400 million euro. Harrold showed that the new program will see the reform of the social assistance system, the health sector and the fiscal administration. He said that in Romania, the health system has a problem. Regarding fiscal administration, Harrold said that in Romania there are 300 offices compared to 10-20 in other countries. He said the payment of taxes should be made once a year, through an e-system.