Romania Fin Min: IMF Forecast On '10 GDP Growth May Be Optimistic

"I hope that IMF's latest prognosis will materialize. I am still prudent," Vladescu said.

Romanian gross domestic product declined 7.1% in 2009, after a growth of 7.1% in the year before. The country's budget deficit came in at 7.4% of GDP, from around 5.2% of GDP in 2008.

The authorities in Bucharest pledged to narrow the gap to 5.9% of GDP this year, a task that could prove difficult as the initial figures for the first months are below expectations.

Nonetheless, Vladescu said recently Romania met its 8.25 billion lei (EUR1=RON4.146) budget deficit target for the first quarter set with the IMF, despite lower-than-expected revenue.

The minister declined to comment on a possible revision of the 2010 budget deficit target, or on the information suggesting the government plans to ask the IMF for a new waiver of non-observance regarding the general domestic arrears.

Romania's consolidated budget posted a deficit of 1.1% of GDP in the January-February period, amounting to RON5.8 billion. Total revenue to the consolidated budget fell 3% on the year, while expenditure rose 5.8%.

Romania and the IMF last year signed a EUR13 billion loan agreement, part of a EUR20 billion package that includes funds from the EU, the World Bank and other international lenders.

An IMF mission came in Bucharest Tuesday for the fourth review of Romania's progress under the program. Following the mission, the IMF will decide whether to disburse another EUR850 million to the country.

So far, Romania received around EUR9.2 billion from IMF and EUR2.5 billion from the European Commission.

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