Romania Jan-Oct Budget Gap Rises To 5.2% Of GDP – Fin Min

After the first nine months, the budget gap came in at 25.56 billion lei (EUR1=RON4.2961), or 5.1% of the GDP, slightly below the RON26.9 billion cap agreed with the International Monetary Fund.

Romania obtained earlier in the year a EUR20 billion financial package from the IMF, the European Union and other international institutions to cope with the deepening recession.

The agreement between Romania and the IMF fixes quarterly performance criteria for the budget deficit, which needs to be lower than 7.3% of GDP end-December.

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However, the IMF said last week that it expects Romania’s deficit to reach 7.8% of the GDP this year, due to delays in implementing measures aimed to cut public spending and help keep the budget deficit in check.

In 2010, Romania pledged to bring down the budget gap to 5.9% of the GDP.