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Romania Could Ask IMF For Higher Deficit Target To Cushion Flood Effects

Romania could ask the International Monetary Fund to allow it run a higher budget deficit in 2010 to cope with the effects of devastating flooding that already killed 22 people and forced thousands out of their homes, Transport Minister Radu Berceanu said Thursday.
Romania Could Ask IMF For Higher Deficit Target To Cushion Flood Effects
01 iul. 2010, 18:59, English

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.

„By then, we will have prepared all documents to discuss a case of force majeure,” Berceanu said.

Last year, Romania signed with the IMF a EUR13 billion 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.

According to Berceanu, Romania could ask for a target of 7% of GDP and use the difference to mitigate and remedy flood damage.