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Jeffrey Franks predicts inflation growth in Romania

Inflation will grow as a consequence of the increase in the VAT, said chief of the mission of the International Monetary Fund (IMF) for Romania Jeffrey Franks when at the end of a round of talks at the National Bank of Romania (BNR).

It goes without saying that inflation will suddenly grow as a result of the increase in the VAT, said Jeffrey Franks.The head of the IMF mission described the sudden growth of inflation as a result of the increase in the VAT and said that it would be a temporary phenomenon and would not be of a monetary character and, consequently, it would not influence the monetary policy.Jeffrey Franks also said that the BNR monetary policy was very appropriate to the economic situation in Romania and he did not see any special reason for difficulties in the field of the monetary policy to be encountered.

We worry about the weak absorption of EU funds

We worry about the weak absorption of EU funds to Romania, IMF chief of mission Jeffrey Franks declared. The IMF official said that EU fund absorption needs to be improved and added that there is a large amount of money Romania can access free and which the country might lose. Franks said that he did not tackle the issue of a new agreement with Romanian officials.Here are the most important declarations:

we want to see an improvement in EU funds absorption we work with EU specialists to resolve the issuethere is a huge amount of money Romania can access free people need to know how to make a project if funds are not accessed by the deadline, the money dissappearwe need to do whatever we can to support Romania to get the money we did not discuss the possibility of a new agreement we are at the disposal of the country we will continue talks with the Finance minister

Romania Economy Could Turn To Growth In 2011

The IMF estimates Romanian economy will contract by around 2% this year and will pick up modestly in 2011, head of the National Council of Private SMEs, Ovidiu Nicolescu said earlier Tuesday.

On Monday, Franks said the IMF will revise its forecast on Romanian economic growth for 2010, but the new prognosis will be less pessimistic than a 3% contraction envisaged by the European Bank for Reconstruction and Development.In its June forecast, the IMF said Romanian economy is expected to stagnate or decline by 0.5% this year, from a 7.1% contraction a year earlier.

Sursa: http://www.actmedia.eu

Tags: romania monetary jeffrey growth inflation franks bnr

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