Romania merged its supervision authorities for the stock exchange, insurance and private pensions markets into a single entity to meet pledges to the International Monetary Fund.
President Traian Basescu signed a law to form the Financial Supervision Authority today in Bucharest, his office said in an e-mailed statement. Dan Radu Rusanu, a lawmaker from the ruling coalition, will probably head the office, while Daniel Daianu, a former finance minister, may serve as vice president, according to Mediafax. Parliament must vote on their appointment.
Romania, the European Union’s second-poorest member, is trying to complete a 5 billion-euro ($6.5 billion) precautionary accord with the IMF and the EU in June, after getting a three- month extension to have more time to complete pledged state- asset sales and pass legislation.
“The approval of the financial authority is one of Romania’s pledges to the IMF and needs to be respected,” Rusanu said. “My plan, as head of the institution, is to have a non- banking market, valued at about 15 billion euros, that is compatible with other European markets.”
The government, which hasn’t drawn any money from the bailout so far, plans to start talks on a new accord with the lenders after the current one ends.
To contact the reporter on this story: Andra Timu in Bucharest at firstname.lastname@example.org
To contact the editor responsible for this story: James M. Gomez at email@example.com