Prima pagină » English » Romania’s Main Priorities Should Be Cutting External Gap, Budget Def – Ctrl Bker

Romania’s Main Priorities Should Be Cutting External Gap, Budget Def – Ctrl Bker

Cutting the current account and budget deficit should be the Romanian authorities’ main objectives, as any increase of the deficits would deteriorate foreign investors’ sentiment on the country's economy, central bank chief economist Valentin Lazea said Wednesday.
Romania's Main Priorities Should Be Cutting External Gap, Budget Def - Ctrl Bker
18 mart. 2009, 11:43, English

“Any action that deteriorates foreign trust risks to harm more than the benefits Romania could get,” Lazea said at a conference organized by Romanian daily Ziarul Financiar and consultancy company PricewaterhouseCoopers.

Lazea added that the government decides to invest EUR3 billion in the economy, thus increasing the budget deficit, capital withdrawals could reach EUR6 billion due to investors’ lower confidence.

An agreement with the International Monetary Fund IMF should rise Romania’s forex reserves, improve investors’ perception upon the country and strengthen authorities’ drive for structural reforms, Lazea said.

Lazea said his statements are not official views of the central bank.