From a macroeconomic point of view, Romania is in excellent shape, considers Jeffrey Franks, the head of the IMF mission in Romania. On the other hand, when it comes to structural reforms, things aren't going so well, as we need to push for reform more enthusiastically, he said in an interview.
Jeffrey Franks expects an economic growth of 1.5-2%, above the European average, for the economy of Romania, which takes a recession in the Eurozone into account.
The professionalization of the management of state owned companies is intended to eliminate the influence of the politicians, by making changes in the government, according to him.
The arrears have been substantially reduced at the level of the central authorities, and moderately at the local level, but they still remain very high in the state owned companies, the head of the IMF mission to Romania said. Their elimination can be done several ways, each of them affecting the revenues from the sale of stakes in these companies.
Reporter: Do you consider that the potential early elections could affect the schedule for the implementation of the reform measures by the government?
Jeffrey Franks: I do not expect any radical changes. There can however be changes in the deadlines for their implementations, because the elections can postpone these deadlines. It is not, however, a significant matter, because elections have to occur in democratic countries and we need to take this aspect into consideration.
Reporter: What is your view on the progress that Romania has achieved since your last visit?
Jeffrey Franks: In terms of fiscal and monetary policy, the country is in an excellent shape. The targets have been met, inflation is low, and this year's budget seems to be on the right track. Last year's economic growth exceeded expectations, and this year's drop will be low, but
