





The government agreed with the IMF to cut heat subsidies / bills can rise by 60%
The subisdies for themal energy is offered from the state’s budget and from local budgets. IMF chief of mission in Romania, Jeffrey Franks declared for Mediafax that the government will cut the subsidy by the end of the year but will maintain the same level or even increase subsidies for heat for underprivilidged people.
According to IMF representatives, the elimination of subsidies this year will also have an effect on inflation that would increase up to 6%, according to the lattest central bank estimate.