IMF has some more issues to discuss

IMF’s Bucharest office on Monday confirmed the new supplementary letter of intent with the Romanian Government was not finished yet. The fund expects to see “firm steps” to cut losses in the energy sector and the “slippages” in the schedule agreed this spring “mended” by early October. The IMF experts will continue the talks with the authorities over the steps intended to contain the salary raises in the state-run companies, deemed as uncalled-for considering the labour productivity trend. The problems the IMF mission found during the fourth and final revision of the stand-by agreement (July 14 – August 1), include export growth slowdown, higher current account deficit and poor collection of bills, especially of the thermal power ones. IMF also criticises the slower privatisation than scheduled of the companies in the energy sector. ZF