Few weeks ago I wrote a post about the benefits of personal bankruptcy law for the Romanian economy. At that time I was told that it IMF told Romania not to introduce such a law. Here is what protfolio.hu says IMF is asking Hungary to do to get a credit line:
– restoring the central bank’s independence;
– reinforcing the Fiscal Council;
– stricter fiscal policy, especially on the expenditure side;
– considerable reduction to crisis taxes and their eventual phasing out;
– putting a stop to implementing ad-hoc economic policy measures;
– seeing through the previously announced reform measures;
– overhaul of the system of social transfers;
– restructuring of public transport companies;
– introducing the institution of consumer bankruptcy.
The last point is exactly what I was proposing for Romania. I am glad IMF agrees with me but for measures that would be applied to Hungary and not to Romania.
Then I need to ask: why is this good for Hungary and not for Romania?
To be honest I am impressed with the IMF requests. They are pro-market and guaranteed to deliver sustainable economic growth. Too bad they are not asking them from the Romanian Government also.