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Romania To Maintain IMF-Agreed 6.8% Deficit Target After Floods – PM

Romania’s Prime Minister Emil Boc said Sunday, during a visit to a severely flood-hit village in northeastern Suceava county, no discussions have been held with the IMF regarding a higher deficit target.
Romania To Maintain IMF-Agreed 6.8% Deficit Target After Floods - PM
04 iul. 2010, 16:25, English

According to Boc, Romania must meet the agreed 6.8% goal.

Berceanu said Thursday that Romania could ask the IMF to allow it to run a higher budget deficit in 2010 to cope with the effects of the recent devastating floods. According to Berceanu, Romania could ask for a target of 7% of GDP and use the difference to mitigate and remedy flood damage.

Berceanu added that the authorities in Bucharest have already notified the IMF board, but the actual discussions could take place during an IMF visit to Romania scheduled for July 26-August 4.

Last year, Romania signed a EUR13 billion IMF agreement, part of a larger EUR20 billion aid package that includes funds from the European Union, the World Bank and other international lenders.

Romania and the IMF recently agreed on a budget deficit target of 6.8% of the gross domestic product this year.

Twenty-three people have died in the severe floods that hit Romania over the past two weeks and thousands have been evacuated from their homes.