The authorities will have to continue to aggressively restructure problem sectors, accelerate privatisation of the energy sector, enforce tougher measures to ensure tax and utility payments, and make bankruptcy legislation work better. These are the conclusions of a survey conducted by IMF experts and approved by the institution's European Department. "The economic benefit from of reducing arrears is considerable, as it goes to the heart of the lagging restructuring process, which is one of the main challenges facing Romania in the transition to a market economy," the above-mentioned document states. The Fund experts say that over the last three years, total arrears in Romania remained stubbornly high, at just under 40% of GDP. "Despite some progress in restructuring, state owned enterprises continue to run up large arrears to the budget and state-owned energy suppliers," the analysts say. Along with companies in the privatisation authorities (APAPS) portfolio, the mining and railway sectors now account for the major source of public sector arrears to the budget. Total outstanding arrears at the end of 2003 of the mining and railway sectors amounted to 2.7% and 1% of GDP respectively. ZF
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