IMF Staff Country Reports

Romania: Selected Issues and Statistical Appendix

Publication Date:

July 26, 2004

Electronic Access:

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Summary:

This Selected Issues paper for Romania reports that the practice of nonpayment and arrears accumulation has been widespread in Romania. Managers of enterprises that remain in the pipeline for privatization for long periods of time have little incentive to reduce arrears. The state contributed to growth of arrears by accepting nonmonetary tax and utility payments, using tax offsets in procurement, and tolerating payment arrears. These practices have been prevalent at all levels of state and local government, as well as state utility companies.

Series:

Country Report No. 2004/220

Subject:

Arrears Central bank policy rate Exchange rates External debt Financial services Foreign exchange Inflation Prices Producer prices