A new accord with the International Monetary Fund (IMF) is setto include conditions for new structural reforms related toworkforce, infrastructure and investment, stated the IMF's missionchief to Romania, Jeffrey Franks, adding Romania is no longerviewed as a "mediocre student".
Romanian authorities have voiced their interest in sealing aprecautionary agreement with the Fund after the current bailoutloan is completed in April. In the case of a precautionaryagreement, the state can tap funds if unexpected problems comeup.
"It's very clear that the state has not completely beenrestructured. There are areas in which Romania's economy stillneeds to reform in order to be flexible and productive as it needsto be," said Franks in an interview with Bloomberg.
IMF's board will meet in early January to assess Romania'sprogress.
"A delay of a week or two would not have any significant effect onthe new arrangement," Franks said. "We are planning to come tonegotiate a follow-up arrangement with the idea that the follow-uparrangement 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 toadhere to IMF demands for spending and job cuts, Franks said.
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