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February 1, 2023

Franks, IMF: It’s too early for a likely rise in salaries and pensions to be discussed

Jeffrey Franks, head of the International Monetary Fund (IMF) mission to Romania, told the Money Channel that despite Romania’s good economic indicators it’s too early for a likely rise in salary and pensions. Franks said that the population has already begun to feel the changes in the economy, unemployment began falling. Salaries in the private sector began rising again, the economic situation started to improve. Money is coming in, people afford buying,” Franks also said, adding that, in spite of the negative indicators in the rest of Europe, Romania managed to post positive indicators. “It’s not my business to advise Romanian politicians on how to run the country. Romania has begun overcoming the crisis, you have an economic growth of 2 per cent. Growth will be higher than the European Union average, Jeffrey Franks told the Money Channel in an interview.

The head of the IMF Mission to Romania told Bloomberg Romania might put off the sale of stakes in several state companies this year, due to the large number of authority approvals necessary, as the authorization process takes longer than expected, Mediafax reported. While he would not say the names of those companies, he nonetheless mentioned the state would try to sell its stake in other companies before making yet another attempt at its stake in Petrom, which the state proved unable to list on the stock exchange via a secondary public offering in the summer of 2011.

Franks also said that there have been cases where reforms are not put into practice as fast as anticipated, which means some of those companies will be moved down the privatization list, adding that this is not a commitment issue, as it  was common knowledge state company reform agenda is quite bold and delays are likely.

Tanasescu: I don’t believe Romania would draw IMF money

Mihai Tanasescu, Romania’s representative to the International Monetary Fund (IMF), told a Money Channel that Romania should be cautious, despite its being well-anchored for now. “ It’s all too early <for a rise in salaries and pensions>. Europe is going through a strong crisis, Romania must be careful.”

Also, Tanasescu does not believe Romania would draw IMF money.

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