Prime Minister of Romania Calin Popescu – Tariceanu had an informal meeting with an IMF Delegation headed by Emmanuel van der Mensbrugghe

The Government fiscal policy, a low rise in administrated prices and the salary policy made Romania achieve an excellent economic evolution in 2006, Mr. Emmanuel van der Mensbrugghe , Head of IMF Mission has appreciated, on today's informal meeting with Prime Minister Calin Popescu – Tariceanu at Victoria Palace.

The IMF official has stated that these developments are obvious from the over 7% healthy economic growth and the continuation of disinflation, the rise in the current account deficit being the only element of concern. He has recommended to the Government to continue the same policy of 2006 in 2007 too and to maintain the budget deficit and the salary policy in limits meant to encourage a healthy economic growth.

Prime Minister Tariceanu has given assurances that: no relaxation will occur, either in fiscal policy or in the salary policy for the macroeconomic stability to be assured and the economic growth to maintain the same trend as in 2006. The Head of the Executive has further added that the budget deficit in 2007 will be 2,5% of GDP, and the budgetary allocations will encourage investment in development projects aiming at accelerating the bridging of the gaps that separate Romania from the EU member states. The Government is to redistribute funds which were unused by the Ministries in 2006, to finance investments carried out by other Ministries, in order to avoid the consumption supply with this money, Prime Minister has further stated .


Background information

Today's meeting had an informal character and subscribed to the biannual visits procedure that IMF representatives enforce in case of the Fund member states that have not a stand- by Agreement. According to this procedure, one visit is informal – as the one the IMF Delegation in Romania undertakes until October 11th, and the second is official and will take place in February. On the official visit, there are annual consultations between authorities and IMF experts, on the basis of Article 4 of IMF Regulations.

Romania does not have and it does not negotiate a Stand – By Agreement with IMF, such an agreement being no longer necessary, given the economic developments in our country and its EU Accession. This means that the Government alone decides on the economic policies it is going to enforce, without being conditioned any longer on IMF decisions.  

  

Government of Romania - Press office - 09.10.2006