Romania can enter 2011 with a better fiscal situation as long as it meets the terms of the agreement with the IMF, which will make investors consider it attractive again, said the head of the IMF mission, Jeffrey Franks, who gave an exclusive interview to BURSA.

Find out his answers on what the Romanian authorities should do help Romania escape recession and what are the strengths of the Romanian economy over the medium and long term, according to the Fund.

Reporter: Do you think next year we will be able to raise money from the foreign markets more easily?

Jeffrey Franks: Yes. I am sure of it. I think that if the austerity measures for the reformation of the public healthcare system will continue, Romania will enter 2011 in better fiscal shape, with important structural reforms, which have already been implemented, as well as other reforms on the way, (which are nearly completed), and this will turn Romania into an attractive place for investors.

Reporter: Under these circumstances we could see an economic recovery. You are predicting the economy would grow 1.5% next year. Isn"t this estimate a little bit optimistic?

Jeffrey Franks: A 1.5% increase is not too big, if we consider prior economic data.

Reporter: Do you think raising taxes was good for the Romanian economy?

Jeffrey Franks: As I said the last time I was in Bucharest, a very strong adjustment needs to take place, and choosing the methods to accomplish it isn"t easy. We have discussed various alternatives with the authorities and we initially decided to focus exclusively on cutting spending. We have supported the authorities concerning this measure, but we did have a few concerns over the effects it might have on certain groups or companies in terms of distributing expenses. In the end, the Constitutional Court invalidated some of these measures and they nee