ECONOMY FINANCE&BANKING

President Iohannis wants Romania to continue collaboration with IMF

President Klaus Iohannis says Romania must preserve a framework of collaboration with the International Monetary Fund, as most investors see the relations with the IMF as an indicator of stability.

“As you know, the programme [of IMF assistance to Romania] expired in September 2015, without a favourable final evaluation from the IMF, which raised questions on the Government’s will to implement the committed structural reforms. Romania must preserve a framework of collaboration with the IMF and act responsibly, without the macroeconomic stability being affected,” Iohannis wrote in a message to the 2015 Analyst and Investors Day, conveyed by presidential advisor Dan Mihalache on Wednesday.

“Attracting foreign investments is a priority for Romania. We must equally focus, however, on supporting the Romanian capital and the domestic investments,” the document further reads. It states that the foreign investors are very important for the development of the local capital market and they also contribute to educating the domestic investors who might consider the stock exchange as an instrument to finance their business.

The President also pointed out that the economic dimension of the Strategic Partnership between Romania and the United States of America has a special potential to be developed.

“I think all the parties involved must make efforts to promote Romania as an investment place,” Iohannis asserted, hailing the relevant activity of American and British ambassadors to Romania.

A clear strategy for the domestic capital market, involving all the decision makers and concerned actors, must be considered as soon as possible, especially as the European Union has launched on September 30 the action plan for a Capital Markets Union, the head of state stressed.

“Without the Government’s involvement, however, it will be impossible to obtain a growth of the local market and to close the existing gap to other European markets. Therefore, the continuation of the privatization programme through the Stock Exchange is vital,” he stated.

Deep reforms are also necessary in the state-owned companies. “The concept of corporate governance in state-owned companies must be fully included in the Government’s management of the Romanian state stakes. Unfortunately, the corporate governance was not implemented in a consistent way, and the past years have even brought stagnation in this process,” the President concluded.

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