IMF praises Romania’s progress, warns of Eurozone risks

Romania registered progress in the economic and fiscal programme that it agreed with the IMF in March, but risks have risen considerably because of the Euro Area crisis, “solid vigilance” being needed in what concerns the supervision of the banking system, IMF deputy general manager David Lipton stated in a communiqué issued by the IMF after the institution’s Executive Board approved on Monday the third evaluation of the precautionary agreement signed in March, Mediafax informs. The official noted that the economy resumed growth, the inflation rate dropped and authorities are “on schedule” to attain the fiscal targets set for 2011, however he recommended authorities to make efforts in order to improve the absorption of European funds, to reform state-owned companies and to lower arrears. “The 2012 budget should bring the deficit significantly below 3 per cent of GDP. Plans to tackle chronic financial problems in the health sector and to improve fiscal administration are welcomed. There is also the need for new progress in improving the absorption of European funds. New efforts to reform state-owned companies, along with consolidated regulation and a market-oriented price policy, will be essential for lowering arrears, improving economic efficiency and consolidating growth,” Lipton pointed out.

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