The Romanian Authorities have a very ambitious agenda to reform state owned companies, and the International Monetary Fund (IMF) will check the progress of the privatization process of these companies every three months, Jeffrey Franks, the head of the IMF mission to Romania said in an interview. He said he hopes to see improvements in this respect on his next visit.

The head of the IMF added that the Central Bank needs to make sure that the foreign shocks that have caused the rise in inflation will not lead to a generalized increase in prices. Moreover, Jeffrey Franks said that the NBR has all the necessary means available that it needs to control inflation. However, the IMF does not wish to indicate the concrete measures that would have to be taken.

* The head of the IMF: "I"m not asking the Finance Ministry to pay the bills of the CNVM, but I"m asking them up to come up with a legal solution to the problem that the latter is faced with"

Reporter: You have announced that the Romanian authorities will begin the privatization of state owned companies this year, including "Nuclearelectrica" and "Hidroelectrica". The two companies were not on the initial list of companies to be privatized. What will the sale process consist of?

Jeffrey Franks: In our talks with the Government we have agreed to have the list of companies to be privatized include minority stakes of "Hidroelectrica" and "Nuclearelectrica".

We will provide the government with counseling on the sale, but I think the key option would be to look for a strategic investor, which would take over a minority stake. Another alternative would be to list them on the Stock Exchange.

Reporter: Has a deadline been set for the privatization of "Nuclearelectrica" and "Hidroelectrica"?

Jeffrey Franks: I think it is realistic to think of a period of 12 months.