Publicaţie FMI: Romania: Selected Issues and Statistical Appendix
Widespread arrears reflect the slow pace of restructuring in Romania, and have delayed the transition to a market economy. State-owned enterprises (SOEs), after losing access to directed credit and most budget subsidies in the 1990s have resorted to payments offsets and arrears to keep afloat. The authorities sanctioned this outcome by tolerating late payment of tax and utility bills. The associated lack of transparency has hampered structural reform efforts and contributed to the growth of the informal economy, weak governance and tax evasion.
[...]
We find that inflation persistence is the most important source of inflation, followed by exchange rate and labor cost shocks.