The second day of talks with the IMF: the new prognoses, not ready yet

Prime minister Emil Boc and Finance Ministry Sebastian Vladescu yesterday stated they had not started talks with the IMF for a new agreement next year after the current one expires, with discussions between the IMF mission and the NBR, the Finance Ministry and employers’ associations focusing on the new macroeconomic projections for 2010 and 2011 and on the issue of EU fund absorption. Ahead of starting discussions, Vladescu said raising VAT to 25% in parallel with cutting the flat rate to 10% for 2011, a new fiscal policy scenario launched on the market on Monday, has not been discussed so far. The scenario hasn’t been officially confirmed by anybody. As regards the new economic growth scenario to be taken into consideration, Vladescu stated the figure hasn’t been set, yet. Despite estimates in line with which 2011 is likely to be the third year of recession for Romania, Jeffrey Franks said he believed an economic rebound is possible next year. “We’re drawing up the new prognoses. We haven’t finalised them, yet, but I am more upbeat than many analysts as regards 2011,” said Franks.