Romania '10 Budget Deficit At 6.6% Of GDP, Below IMF-Imposed Target - Sources

Prime Minister Emil Boc and Finance Minister Gheorghe Ialomitianu discussed Tuesday at the government's headquarters the conditions included in the agreement with the IMF, before the fund's Board meeting scheduled for the end of this week, the sources said.

According to the government's letter, the preliminary budget deficit is around 6.6% of the GDP, lower than the target agreed with the IMF of 6.8% of GDP. Also, the state arrears and the number of public jobs fell below the ceilings agreed with the fund.

Thus, the number of public employees was at 1.27 million at the end of 2010, compared with the 1.29 million figure set in the IMF agreement.

Also, the finance minister told MEDIAFAX reporters that the arrears prerequisite was met. "According to the additional letter of intent signed with the IMF, arrears should not be higher than EUR250 million at the end of November. The government achieved this target as arrears were of EUR248 million end-November," Ialomitianu said.

In the spring of 2009, Romania and the IMF signed a EUR13 billion stand-by arrangement, which is part of a EUR20 billion financial package that also includes funds from the European Commission, the World Bank and other international lenders.

The IMF's Board will discuss on January 7 the releasing of the next tranche to Romania, worth some EUR870 million.

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