about us | newsletter | contact | archive | members area
CRISTIAN IONESCU, ALLIANZ-TIRIAC
The authorities are more open than in the past in accepting digital technology, even the»
  News:      POLITICS   |   ECONOMICS   |   ENERGY   |   INVESTMENTS   |   APPOINTMENTS   |   GREEN   |   INFRASTRUCTURE   |   REAL ESTATE   |   AGRIBUSINESS   |   DRIVING   |   CITY LIFE   |   EVENTS   |

IMF and EC officially conclude after visit in Bucharest

Official representatives of the International Monetary Fund and the European Commission visited Bucharest during January 21-February 4 to conduct discussions on the combined first and second reviews under the IMF Stand-By Agreement (SBA) and on the status of Romania’s precautionary balance of payments program with the European Union.

2014-02-11 13:54:28

Staff level agreement has been reached. The program remains broadly on track. Most end-December performance criteria were met and structural benchmarks have either been met or are nearing completion, are part of conclusions stated in the final visit report and quoted by newswire ActMedia.

According to the report, in 2013, real GDP growth picked up to an estimated 2.8 percent, on the back of continued strong exports, while domestic demand remained subdued. Economic activity was driven mostly by robust industrial output and an abundant harvest. In 2014, real GDP is projected to advance by 2.2 percent with domestic demand firming on the basis of a supportive policy framework, better absorption of EU funds, and an improvement in confidence.

Historically low inflation is projected to decline further in the first half of 2014 before returning to the upper part of the central bank's target band in the second half of 2014. The current account deficit is expected to remain between 1 and 1.5 percent of GDP, contributing to Romania's strong external position, which has helped the country weather recent pressures on emerging markets.

Also, the closing report states that The authorities approved a budget consistent with a deficit target of 2.2 percent of GDP for 2014. A subsequent delay in the implementation of excise taxes on fuel products will be compensated with freezes on the expenditure side. The authorities intend to continue fiscal adjustment in 2015, in order to reach Romanian medium-term budgetary objective of a structural deficit of 1 percent of GDP, while also accommodating expected further increases in co-financing of projects supported by the EU.

Monetary policy continues to be accommodative, which has translated into a considerable reduction in lending rates. Combined with the government loan guarantee programs, this should enable lending activity in lei to start a modest recovery. Notwithstanding pressures on asset quality, the banking sector continues to maintain reassuring capital, liquidity and provisioning buffers.

Progress on reducing state-owned enterprise arrears has stalled. However, corrective actions are being launched, including budgetary transfers and restructuring measures. An action plan to sustainably lower arrears over the medium term will be defined. Building on the success of the Romgaz IPO, progress toward completion of IPOs of three other state-owned enterprises remains broadly on schedule. Regulatory reforms in energy and transport sectors are set to continue, as well as deregulation of the gas and electricity prices, in line with the earlier agreed roadmaps.



COMMENTS
There are 0 comments:

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

0 Comments  |  1338 Views
Daily Info
Sibiu and Timisoara, top priorities for investors in Romania

Sibiu and Timisoara are top priorities for investors who are interested to come to Romania, as revealed by the fifth edition of Cities of Tomorrow conference, organized by the...

Gas prices liberalization in Romania to start in April

The Minister of Energy announced that the prices for domestic gas will go through a liberalization process starting April 1, with no technical reasons to postpone it, as Minis...

Toyota recalls 2.9 million vehicles globally over airbags issues

Toyota Motor Corp said it was recalling a total of about 2.9 million vehicles in Japan, China, Oceania and other regions including its Corolla Axio sedan and RAV4 SUV crossove...

Romania to develop economic component of the strategic partnership with US

Prime Minister Sorin Grindeanu and the Cabinet members had a meeting with the members of the fifth annual economic mission in Romania of the American-Romanian Business Council...

Debate on digital economy at Cluj Innovation Days 2017

About 40 specialists in various domains of digital economy debate its future at Cluj Innovation Days 2017. For two days, on March 30 and 31, the regional forum will be the epi...

 
 
   
advertising

advertising

advertising

advertising

advertising

advertising

More on News
Energy Performance Contracting for public buildings

The Romanian Association for Promoting Energy Efficiency (ARPEE), established in 2012, has as overall scope the mobilization of its members’ resources and competences to ...

Ciolos: Progress in anti-corruption fight can no longer be wiped off through ordinances dedicated to politicians

The progress made in the fight against corruption can no longer be wiped out surreptitiously through emergency ordinances "dedicated to a handful of politicians," former Pr...

EU seals trade deal with Canada

The European Parliament voted in favour of the Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada, concluding the ratification process of this deal...

SRI and DNA have no protocol, says SRI Spokesman

Spokesman of the Romanian Intelligence Service (SRI) Ovidiu Marincea stated that the SRI does not have any protocol with the National Anticorruption Directorate (DNA), but ...

President Iohannis wants to address Parliament on 7 February

President Klaus Iohannis sent a letter to the Heads of the two Chambers of the Legislature, in which he reveals that he wants to address Parliament on 7 February, in respec...

Iohannis at Government meeting: I discussed with the PM; I am pleased with how you do your job

President Klaus Iohannis said on Wednesday he had, before the Government meeting, a "very applied" discussion with Prime Minister Sorin Grindeanu, and the head of state tol...

PM Grindeanu: We support our views on 2017 budget

The Government will support its views in respect to the 2017 budget draft in the Supreme Council for National Defence (CSAT) meeting on Tuesday, Prime Minister Sorin Grinde...