Franks: A new agreement with the IMF will include new reform conditions

A new accord with the International Monetary Fund (IMF) is set to include conditions for new structural reforms related to workforce, infrastructure and investment, stated the IMF’s mission chief to Romania, Jeffrey Franks, adding Romania is no longer viewed as a “mediocre student”.
Romanian authorities have voiced their interest in sealing a precautionary agreement with the Fund after the current bailout loan is completed in April. In the case of a precautionary agreement, the state can tap funds if unexpected problems come up.
“It’s very clear that the state has not completely been restructured. There are areas in which Romania’s economy still needs to reform in order to be flexible and productive as it needs to be,” said Franks in an interview with Bloomberg.
IMF’s board will meet in early January to assess Romania’s progress.
“A delay of a week or two would not have any significant effect on the new arrangement,” Franks said. “We are planning to come to negotiate a follow-up arrangement with the idea that the follow-up arrangement will probably go into effect in April”.
Romania had reversed its image as an economic “mediocre student” after the government weathered no-confidence votes and protests to adhere to IMF demands for spending and job cuts, Franks said.