Monday, October 3, 2011

AP: IMF warns Romania to speed up reforms

An official of the International Monetary Fund has warned that reforms are slowing in Romania ahead of a general election.

Chief of mission for Romania Jeffrey Franks told Mediafax news agency in an interview published Friday that "there are concerns that political pressures are slowing" the reform process.

IMF directors "want the government to have a firm approach to fiscal policy and structural reforms even if there are elections," Franks was quoted as saying.

Romania promised in 2009 to make sweeping spending cuts in exchange for euro20 billion ($27.23 billion) in rescue loans, which it receives in installments.

Romania holds elections in 2012 when the IMF expects the country's economy to grow less than the earlier predicted 3.5 percent. It is expected to grow 1.5 percent this year.

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