IMF: Romania Must Overhaul Energy, Transport Sectors

Romania’s biggest challenge to ensure a sustainable economic growth will be to overhaul the public energy and transportation system, as the operators in the field require additional resources from the private sector, an official of the International Monetary Fund said Tuesday.

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"The biggest challenge when it comes to economic growth is to implement profound reforms at state-run companies, particularly in the energy and transportation sectors," said Jeffrey Franks, IMF mission head to Romania.

Franks said Romania must restructure the inefficient energy companies and to adjust the legal framework to ensure competitiveness and more realistic prices.

"Without massive investments in energy over the next years Romania won't be able to grow at a fast pace," he added.

Romanian Premier Emil Boc Monday announced plans to deregulate energy and gas prices for both corporate and household consumers in a move to increase competitiveness.

The process is set to unfold between 2013 and 2015.

Romanian household energy and gas consumers are currently sheltered against price fluctuations by the regulatory authority in the field, which sees that almost all producers allocate part of their output for household consumers at fixed prices.

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