Romania’s Public Sector Adjustment Takes Longer In Democracy, But Will Be Achieved - IMF Official

Speaking in a TV show on private TV station PRO TV, Franks said one can take rapid measures in a dictatorial regime, yet, dictatorship brings many disadvantages.

He pointed out that democracy may be a slower and more complex process, but, in the end, it is a much more representative process. He added that Romanian politicians made it clear they need time for talks and debates on the legislative changes upheld by the International Monetary Fund and stressed he totally agrees with the Romanian authorities' stand in this respect.

Franks also underscored the public finance sector is a field that requires politicians' involvement and technical analyses, because it is a more complex process, compared with the private sector, considering there is no general manager to decide whatever they want.

According to Franks, the IMF is closely working with the Romanian Government on the adoption of several laws that are part of the economic program included in the stand-by agreement signed with Romania.

Franks reiterated that the IMF is trying to discuss with the Romanian Government about potential solutions to reduce the country's budget deficit, adding no solution whatsoever will be imposed.

Franks said the government can choose to reduce or keep a tight grip on public spending or to increase taxes, stressing the Romanian authorities will have the final say on the matter.

Romania and the IMF signed a EUR13 billion loan agreement last year, part of a wider package which includes funds from the European Commission, the World Bank and other lenders.

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