Romania has put the local stock exchange, the insurance and the private pensions markets under a new, single supervisory body, in line with demands for the International Monetary Fund (IMF). President Traian Basescu officially passed the law to form the new Financial Supervision Authority yesterday (April 23 ).

Dan Radu Rusanu, a politician with the ruling Social Liberal Union (USL) and former finance minister Daniel Daianu are likely to serve as president and vice-president of the new supervisory body respectively. The Romanian Parliament will vote today (April 24 ) to approve appointments to the leadership the Financial Supervision Authority.

Prime Minister Victor Ponta recently criticized the high salaries received by the management of the Insurance Surveillance Authority, the National Securities Commission CNVM and the Pensions Surveillance Authority, all of which will form the new Financial Supervision Authority.

He said salaries in the management of the insurance supervising body were as high as RON 188,000 a month - or EUR 42,000/month, while those at CNVM, of RON 80,000 a month - or EUR 18,000, and finally the management of the private pensions supervision authorities were of RON 62,000 per month, or EUR 14,000. The PM called for much smaller salaries for the management of the new authority to be created, in line with the standard approved by Romania's Central Bank, but he did not give any financial details.

“The approval of the financial authority is one of Romania’s pledges to the IMF and needs to be respected. My plan, as head of the institution, is to have a non- banking market, valued at about EUR 15 billion, that is compatible with other European markets,” said Rusanu, quoted by news organization Bloomberg.

The new financial services supervisory authority is just one of a number of outstanding demands made by the IMF in return for Romania's current Standby Arrangement with the EU/EC/IMF. Installing private sector management in state-controlled companies and privatizing many of the companies themselves are also on Romania's to-do list. It has not been an easy process and the IMF granted Romania an extension to the agreement to allow time to complete these steps.

editor@romania-insider.com