IMF team to discuss follow-up agreement with Romania during July 17-31 visit

By bne IntelliNews July 12, 2013

An IMF expert team headed by Andrea Schaechter will visit Romania in July 17-31 to discuss a follow-up agreement, the newly appointed IMF resident representative for Romania and Bulgaria, Guillermo Tolosa, said in a press release quoted by Agerpres. Similar teams of the World Bank and the European Commission will also attend the talks, Tolosa informed.

On local side, the IFIs’ representatives will discuss with state officials – but also with representatives of political parties, trade unions, investors, banks and civic organisations.

Romania has completed a second consecutive two-year stand-by arrangement (SBA) with the IMF, the EU and the World Bank earlier in June and plans to start a new one this autumn. While the first SBA in 2009-2011 was critical for the country’s macro-stability through the first recession years, the follow-up agreement in 2011-2013 was rather targeted at achieving growth by streamlining the public sector and state-owned companies.

Many of the SBA’s goals remained, however, in limbo even after its completion. The growth remains weak and the realisation of the potential depends on structural reforms in the energy and transport sectors and in state-owned enterprises, acting chair Nemat Shafik announced after the Fund’s board completed the SBA with Romania on June 26.

The IMF head Christine Lagarde will also visit Romania in July 15-16, the Fund’s press release continued. Lagarde will meet officials, but also representatives of the private sector, civic organisations and academia. During the visit paid in Romania, to be followed by a similar one in Lithuania, the IMF’s head will deliver a speech on the need for identifying a new paradigm for economic growth in the region.  


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