“Economic growth in 2012 was almost zero, compared with an increase of 2.2% in the previous year. For 2013, we estimate growth of 1.5%,” Erik de Vrijer, the IMF mission chief to Romania, told a news conference.
He said growth numbers were very weak partly because the economy needs more time to recover after the financial crisis, and partly because of an unfavorable external environment and a low farm output at home.
Additionally, reform implementation and EU fund absorption were “not as fast as envisaged,” de Vrijer said.
The IMF official said Romania has to rely on its own efforts to achieve growth in the coming period and take steps to accelerate EU fund absorption, particularly to finance infrastructure projects.
He said the government and IMF officials have agreed on a number of measures to improve performance in the energy and transportation sectors, including privatization of large state-owned companies such as freight rail operator CFR Marfa.
According to the country’s latest letter of intent to the IMF agreement, the government plans to sell a majority stake in CFR Marfa to a strategic investor by mid-May.
Romania and the IMF signed a EUR3.6 billion precautionary loan agreement in April 2011, successor to a larger EUR20 billion international bailout package received during 2009-2011.
The deal is supplemented by a EUR1.4 billion loan from the EU and another EUR1 billion from the World Bank. So far, the authorities in Bucharest have not drawn any funds.
Joint teams from the IMF, the EU and the World Bank visited Bucharest between January 15 and January 29 for the seventh and eight reviews of Romania’s progress under the loan agreement.