Franks, IMF: The economy will contract this year, too, but not by as much as 3%

The IMF prognosis on the depth of this year’s recession is being revised, but the scenario of a 3% contraction such as the one put forward by the EBRD is too downbeat in the view of the international financial institution, states Jeffrey Franks, head of the IMF mission for Romania. “I’d say the EBRD prognosis is highly pessimistic. I would not be as downbeat as the EBRD,” stated Franks, without specifying which would be the Fund’s new estimates. Official sources stated a GDP decline by 1.5-1.8% is taken into account. The IMF official said the main challenge at this moment is the reversal of the downward trend of the economy and the start of recovery, with the endorsement of the pension reform and a speedier implementation of the unitary pay law as necessary. The IMF mission’s visit started yesterday at the NBR, first with the head of supervision, Nicolae Cinteză, and then with governor Mugur Isărescu.