IMF Chief: Romania's got a tough fiscal situation, but things are brighter on monetary policy side

Dominique Strauss-Kahn, IMF chief, said Romania’s got a difficult financial situation, but things looked brighter in the monetary policy side, Romanian news agency Mediafax informs.

„The fiscal situation is tough, but it will improve. Things look better when it comes to monetary policy”, Strauss-Kahn said in a press conference at the end of his visit to Romania.

He noted that he was happy with the way IMF’s agreement with Romania was carrying on, although there is more work to be done on the fiscal side. Plus, the IMF mission to Romania chief Jeffrey Franks said that even though the last two statistic data are below expectations, there are no reasons for significant changes in Romania’s economic growth forecast at the moment.

„We re-evaluate the last three months’ estimates. We will come to Bucharest in three weeks. At this moment, I can’t see any reason for significant forecast adjustment”, Franks replied when asked whether the IMF would change the 2010 economic growth estimates.

Dominique Strauss-Kahn believes that although the economic recovery has started and Romania might have a reasonable economic increase this year, this does not necessarily mean that the country has come out of the crisis.

„The unemployment will continue to go up for several months from now on and until the moment it will start to drop we cannot say that the crisis is over”, Strauss-Kahn said.

IMF’s executive manager visited Romania as part as a European tour. During this visit, the IMF chief met Romanian President Traian Basescu, PM Emil Boc, Romanian Central Bank governor Mugur Isarescu, the Speakers of the two Chambers of the Parliament, and addressed the reunited Parliament plenum. Plus, Dominique Strauss-Kahn held a speech at the Economic Studies Academy in Bucharest.

Romania is currently bound with the IMF by a two-year agreement, worth of 12.95 billion euros, part of a international finance package for Romania worth of 19,95 bn euros, in which the European Union, the World Bank and EBRD also take part.