Romania Mulls Widening Budget Def To 5.5% of GDP From 4.6% To Fund Infrastructure

Romania will ask the International Monetary Fund to allow it to widen its budget deficit target to 5.5% of gross domestic product from the 4.6% of GDP set in the country’s stand-by loan agreement, people close to the negotiations told MEDIAFAX Sunday.

6 views

Also Sunday, Romanian Prime Minister Emil Boc said he will discuss in the government the possibility of widening the country’s budget deficit to fund infrastructure works.

He said Romania must be courageous and approach the budget deficit issue with the European commission and the IMF.

"We need to have more courage to approach the widening of the deficit to fund infrastructure. Any money spent on infrastructure brings benefits,” Boc said Sunday at the construction site of Romania’s Transylvania Highway.

Sources that will discuss with IMF officials, during the first assessment of the country’s stand-by agreement early August, told MEDIAFAX that Romania will request the IMF to allow the widening of the budget deficit target most likely to 5.5% of GDP from the current target of 4.6% of GDP.

Romania has borrowed nearly EUR13 billion from the IMF under a two-year stand-by agreement, part of a total financial package worth about EUR20 billion, completed with funds form the European Union, World Bank and the European Bank for Reconstruction and Development.

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.