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March 21, 2023

Theodor Stolojan: With IMF’s money we have only bought time for reforms

Romania is in danger of an economic skidding because of the lack of measures to cut the costs in the sector of the personnel expenditures,” Theodor Stolojan declared in an interview for the daily ‘Adevarul.’

“With us, it will be much more difficult to get out. We cannot have any longer a budgetary deficit of 7.3 per cent of GDP. It has to be cut at around 5.9 per cent. If we suppose, quite optimistically, that we shall have a growth of 1 per cent next year, this will not compensate for the reduction of the deficit from 7.3 to 5.9 per cent. And yet we do not know how this year will finish. If it finishes with a skidding, the task for the next year becomes even more difficult. With the money from the IMF we have only bought time for the reform,” he estimates.

As soon as the big countries, the US, Germany, France, Great Britain, see that they have got out of the crisis, their attitude towards Romania will change radically. They will no longer wait for us to return to a certain growth. They will not accept us any longer with so big deficits, and they will not finance them. We have borrowed EUR 20 bln. Any amount in excess will cost us enormously. Thus, we have no choice. We must exert a control on the public expenditures,” Theodor Stolojan also stressed.

The same considers that we should rely on two engines. The first would be export, tourism, and the second one the modernization of Romania. “Each country must create some magnets to attract tourists. If we manage to do this, the tourist comes, going over any obstacle. And I want to tell you this is not to be done with ads with athletes.”

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