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IMF Imposes Romania Performance Criterion On Budget Deficit

Romania negotiated with the International Monetary Fund a budget deficit target of 24.36 billion lei (EUR1=RON4.1998) in 2009, based on RON166.72 billion revenues, not including EU funds, and RON182.72 billion primary expenditures.
IMF Imposes Romania Performance Criterion On Budget Deficit
11 iun. 2009, 10:17, English

The budget deficit will be monitored quarterly through the cash balance of the general government, according to the Technical Memorandum of Understanding of the agreement between Romania and the IMF, which was published Wednesday.

"The authorities will consult with IMF staff on corrective measures in the event of shortfalls in government revenue and financing," the document said.

Thus, the budget deficit should be no higher than RON14.5 billion end-June, and below RON18.6 billion end-September.

After the first four months, Romania’s consolidated budget deficit was at RON9.35 billion, or 1.8% of the GDP.

The issuance of general government guarantees to the non-financial private sector and public enterprises will be limited to RON6 billion in 2009.

Romania and the IMF signed in May a EUR12.95 billion two-year stand-by arrangement, as part of a EUR19.95 billion financial support package that also includes funds from the European Commission, the World Bank, and the European Bank for Reconstruction and Development.