Romanian Govt Upgrades ’10 GDP Growth To 1.3%

Pogea said the gross domestic product is predicted at 538 billion lei (EUR1=RON4.2459) in 2010, up from RON525.1 billion previously. The budget deficit target remained unchanged at 5.9% of GDP, he added.

The budget, a key condition Romania must observe so the International Monetary Fund will disburse new tranches of a EUR13 billion loan, will be approved in parliament by January 15, Pogea said.

He mentioned an IMF review mission is likely to visit Romania after January 20.

A team of IMF experts arrived in Bucharest December 14 for a three-day visit to hold technical talks on the 2010 budget.

According to IMF's mission chief Jeffrey Franks, Romania and the IMF have reached an agreement on the 2010 budget and the authorities in Bucharest should send the draft to parliament for approval shortly.

Romania has received so far around EUR7 billion from IMF in two installments, and was scheduled to get another EUR1.5 billion in December, but the fund decided to hold the cash until the country has a functioning government and a reasonable budget for 2010.

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