Romania Asks IMF To Allow Higher Budget Deficit At 7.8% Of GDP - Sources

Romania has asked the International Monetary Fund to allow it run a higher budget deficit at 7.8% of the gross domestic product this year, due to delays in applying spending cuts aimed at keeping the deficit in leash, people familiar with the matter told MEDIAFAX Thursday.

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"It is highly likely the IMF will accept a budget deficit of 7.8% of the GDP. It could be of 7.7%-7.9% (of the GDP)," the mentioned sources said.

In August, Romania and the IMF agreed on a budget deficit of 7.3% of the GDP this year, nearly double the initial 4.6% cap set in the spring.

On Thursday, secretary of state with the Labor Ministry Mihai Seitan said Romania's budget deficit will most certainly exceed the 7.3% of GDP target, as the time to apply the proposed spending cuts is running short.

Seitan said the Constitutional Court's decision acknowledging government-drafted laws on the wage bill and the reorganization of public institutions came too late and the authorities will not be able to apply them in due time.

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