Debts of Romania's former government to be paid by month-end, vice premier says

The three major topics on today's agenda referred to the measures that need to be taken to properly finance the economy, to urgent investments and to the payment of debts recorded by the government last year.

A series of measures to fight the crisis were also considered, among which Nica mentioned the introduction of pre financing, tax lifts for reinvested profits and the simplification of the fiscal code procedures to rein in bureaucracy. The vice premier added some taxes will be cut so as to reduce the total number of 500 to a minimum, but no new ones will be introduced. 

Concerning a potential external loan from the International Monetary Fund (IMF), Nica said he cannot yet estimate the amount of the credit. 

Leaders of Romania's governing right-centrist Democrat Liberal Party (PD-L) and leftist Social Democrat Party (PSD) had previously decided in January to prioritize payments of debts accumulated by the government in 2008. 

Invoices issued at December 31 2008 and not yet paid total 7.7 billion lei, the equivalent of 2.1 billion euros at an exchange rate of 3.68 lei per euro. 

Finance Minister Gheorghe Pogea announced back then the debts would be paid in several installments, so as to avoid a block in the economy.