IMF experts – Finance Ministry officials, talks about budget rectification


The budget execution data for Q1 2014 to be published on July 25.

A team of International Monetary Fund (IMF) experts on Tuesday was set to discuss this year’s first budget rectification at the headquarters of the Ministry of Public Finances (MFP), official sources told Agerpres. The IMF experts arrived in Bucharest on Monday, and the next day started documenting and talks with the MFP officials, the same sources specified. The MFP announced that it is going to publish the budget execution data for Q1 2014 on July 25.
The general consolidated budget dropped to 0.24 percent of the GDP January through May this year, as shown by the most recent data published by the MFP. The general consolidated budget posted a deficit of 1.04 percent of the GDP for the same interval last year.
According to the Ministry of Finances, the fiscal consolidation of 0.8 percent of the GDP in the first five months of 2014, compared to the same time span of the previous year, and the RON 5 billion worth drop in the deficit respectively, created the premises for meeting the 2014 deficit target. A primary surplus of 0.45 percent of the GDP was also recorded in end-May 2014, compared to the primary surplus of 0.27 percent of the GDP recorded in the same time span last year.
The RON 84.1 billion worth of revenues to the general consolidated budget, representing 12.7 percent of the GDP, were 3.7 percent higher in nominal terms compared to the figure recorded in the same interval a year before.
For 2014, the Romanian authorities and the International Monetary Fund (IMF) agreed on a budget deficit target of 2.2 percent of the GDP, both on a cash-flow basis and calculated based on the EU’s ESA methodology.
Romania ended last year with a general consolidated budget deficit of 2.5 percent of the GDP.
RON 13.5 M borrowed from two commercial banks
Meanwhile, MFP yesterday borrowed RON 13.5 million from two domestic commercial banks, in addition to the bond tender on Monday, when the Treasury drew RON 556.9 million, at a 3.88 percent yield. MFP offered securities worth RON 45 million in the additional session of non-competitive bids on Tuesday, but only two banks submitted bids, totalling RON 13.5 million. The Treasury borrowed on Monday RON 556.9 million from banks, through bonds with a residual maturity of 6 years and 11 months. MFP planned loans worth RON 4.105 billion from commercial banks in July, out of which RON 3.7 billion through eight T-bill and bond tenders and RON 405 million through additional sessions of non-competitive offers, corresponding to the bond tenders. The amounts will be used to refinance the public debt and finance the state budget deficit.

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