IMF To Visit Romania Oct 28-Nov 9, Follow-Up Mission May Be Needed

„In response to a request from the President of Romania, the IMF will be sending a mission to Bucharest during the period October 28 to November 9. Due to ongoing political developments (…) a follow-up mission may be necessary to continue discussions after a new government has been formed,” Jeffrey Franks, the IMF’s Romania mission chief said.

It said the mission will assess the country’s recent economic performance and will discuss the objectives for the next year, along with the necessary policies and reforms to reach those objectives.

„Successful completion of the second review will require a broad-based political commitment to approve a 2010 budget with a budget deficit no higher than 5.9% of the gross domestic product,” the statement noted.

Earlier this year, Romania secured EUR12.95 billion of IMF money under a standby arrangement which includes a series of fiscal and economic measures the Eastern European country must implement over a relatively short span of time.

At a first review in August, the IMF has agreed to allow Romania run a budget deficit of 7.3% of the GDP this year, nearly double from the 4.6% of the GDP cap initially envisaged.

However, Romania must bring the budget deficit down to below 6% of the GDP in 2010.