1. This statement provides information that has become available since the Staff Report was circulated to the Executive Board on December 10, 2010. The information does not alter the thrust of the staff appraisal.
2. The four prior actions for the first review have been met:
The government has submitted to parliament the 2011 budget consistent with a general government deficit of 3.1 percent of GDP. The draft budget has since been approved in the first of three readings. Final approval is expected by end-year.
The government has submitted to parliament a draft pension reform law consistent with commitments under the program. Approval by end-December is a structural benchmark under the program.
NERC (the temporary regulator for utility prices) has instructed communal utility companies to raise end-users heating tariffs to reflect the gas price increase that took place in August. The new tariffs will be effective on January 1, 2011.
Parliament has passed legislation that revoked the temporary ban to levy penalties on citizens for overdue payments of utility bills.