Romania Ctrl Bk Head Says 5.9% Of GDP Budget Gap ‘Reasonable’

„The central bank cannot salute a budget with a deficit of 5.9% of GDP, but we think it’s reasonable in the current context,” Isarescu told a news conference on inflation.

Romania, which benefits from a EUR20 billion loan package from the IMF, EC and other foreign lenders, pledged to bring its budget deficit down to 5.9% of GDP this year, from a gap of 7.3% of GDP in 2009.

Romania has two years to comply with the Maastricht Treaty and lower its deficit to 3% of GDP. However, the European Commission is considering extending until 2012 the deadline by which the states with a high budget deficit must lower their deficits.

According to Commission’s representative in Romania, Fabienne Ilzkovitz a decision in the matter will be taken this month.