Romania Must Reduce Budget Deficit To Keep Public Debt Under Control – IMF Official

Romania’s public debt will not represent a threat if the country consolidates its tax system to reduce the budget deficit to 5.9% of the GDP in 2010 and then take it under the 3% target set by the Maastricht Treaty, the head of the IMF mission to Romania, Jeffrey Franks, said Friday.

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Franks said, after a meeting with Romanian Finance Minister Sebastian Vladescu, Labor Minister Mihai Seitan and EC representatives, that Romania's public debt is lower than other countries' public debt, but will continue to rise, adding this is why the country must consolidate its tax system to reduce the budget deficit to 5.9% of the GDP in 2010 and then set it under 3% of the GDP.

Franks said Romania's public debt will not represent a threat as long as the country observes its engagements. Talks also toughed on the revenues and expenses set for 2010 and the reforms included in this year's state budget.

An IMF mission arrived in Romania Wednesday for a new assessment of the country's economic performance in view of disbursing another EUR2.3 billion from a EUR12.95 billion two-year loan agreement as part of a wider EUR19.95 billion aid package which includes funds from the EU, the World Bank and other international lenders.

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