Romania Must Continue Public Sector Restructuring Process – IMF Official

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The harsh but necessary measures Romanian authorities implemented contributed to a substantial fiscal adjustment, said Franks during a conference organized by the National Bank of Romania, which celebrates its 130^th anniversary.

The IMF official highlighted that Romania will not need an abrupt fiscal consolidation in 2011 and 2012, adding that, nevertheless, reforms must continue in order to ensure a faster economic growth and a more competitive and efficient economy.

Franks said that an IMF technical mission is in Bucharest at the moment to analyze results regarding public spending.

Romania and the IMF last year signed a EUR13 billion loan agreement, as part of a wider package which includes funds from the European Union, World Bank and other lenders.

Under the loan agreement, Romania pledged to reduce its budget deficit to 6.8% of the GDP this year, from 7.2% of GDP in 2009 and implement a series of fiscal and social measures to increase budget revenues and consolidate the country's economy. Romania also pledged to trim public jobs to 1.29 million people, from 1.36 million, and reduce the wage bill to 39 billion lei (EUR1=RON4.2796) in 2011.