A technical assistance mission of the International Monetary Fund (IMF) will be in Bucharest starting today, July 22, at local authorities’ request, according to market sources cited by local Mediafax.

The talks will most likely target the fiscal relaxation measures the Romanian government wants to adopt through the new Fiscal Code, and their impact on the state budget.

According to market sources, IMF officials will also meet representatives of the Romanian Tax Authority ANAF. Their talks will focus on the recovery of debts from state companies.

ANAF recently blocked the accounts of Bucharest transport company RATB and the Romanian national television TVR, due to their debts to the state budget.

The new Fiscal Code cuts the VAT rate from 24% to 19%. President Klaus Iohannis sent the draft back to the Parliament for reexamination, arguing that the new Fiscal Code could prevent Romania from respecting its assumed deficit target of 1.2% of the GDP for the next year.

Irina Popescu, irina.popescu@romania-insider.com