Latest IMF mission to Romania: targets met but pace of reform and privatization must quicken

The International Monetary Fund (IMF) has concluded its latest mission the Romania and despite witnessing the dramatic collapse of the country's shortest lived government, the IMF's monitors have given a general thumbs up to Romanian compliance. All the stand by agreement criteria and economic targets were met, with the exception of central government arrears, which “was missed by a small margin,” according to the IMF.

Approval of the plan to at least partially restore public sector salaries to pre-2010 levels was reiterated, with the IMF indicating it should be possible to raise wages and stay within budget deficit targets. The IMF continued to nag Romania about the progress of structural reforms and privatization of state controlled assets, “The government must intensify its reform efforts, particularly in energy and transport,” reads the IMF report. The Fund is sticking to the 1.5 percent GDP growth prediction for 2012 in Romania, in spite of some mixed economic indicators recently, and predicts that inflation may rise a little over the year but will stay well within the target range. Liam Lever, liam@romania-insider.com