Banca Naţională a României

Mr. Neven Mates, Head of the IMF mission that visited Romania, made the following statement today:

"At the request of the Romanian Government, an IMF mission visited Bucharest during the period June 10-23 to hold discussions on a Stand-By Arrangement with the Fund. The Government and the mission have made substantial progress toward reaching an agreement on macroeconomic policies that could form the basis for a Stand-By Arrangement in 2001-2002. The main objectives of these policies are to contribute to the pursuit of the economic growth by accelerating structural reforms, reduce gradually inflation and containing the external current account deficit. Particularly good progress has been achieved in reaching understandings on the main elements and supportive measures of the fiscal policy, with a view to supporting the disinflation strategy and the objective of keeping the current account deficit at a prudent level, on monetary policy and reforms in the financial sector. The timely implementation of the privatization program that is being formulated with the World Bank will also consolidate the increasing confidence in the performance of the Romanian economy. Further discussions will be needed on the issues of financial performance of public enterprises, particularly in the energy sector, and on measures to ensure prudent wage policy in these enterprises. The mission and the Government intent to continue discussion with a view to reaching agreement and a new mission is scheduled in the context of the preparations of the draft 2002 budget in late August."