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September 24, 2021

BNR: budgetary deficit target to be within limits agreed with IMF

Romania will match this year the objective regarding a budgetary deficit of 7.3 per cent of GDP agreed with IMF, declared on Friday, in Athens, BNR vice governor Cristian Popa, quoted by Mediafax.

“The figures look promising, because the budgetary execution after nine months was below target. Hopefully, the annual figures will be within the planned interval in the multilateral financing programme,” Popa said. Incumbent premier Emil Boc announced last week that the budgetary deficit was on October 1 at 5.04 per cent of GDP projected for 2009, vs. 5.05 per cent of GDP stipulated in agreement with IMF and the European Commission. The IMF agreed in early August, after the first evaluation of the stand-by loan agreement, with a growth of the budgetary deficit of 7.3 per cent in 2009, from the previous projection of 4.6 per cent. The new projection started from the fact that the budgetary revenues are predicted to be RON 17 bln smaller this year against the initial estimate. On another hand, any delay of the next tranche of the IMF loan can exert negative pressure on Romania’s rating, declared on Friday, for Reuters Television, Andrew Colquhoun, director Fitch Ratings for country ratings. “If we see signs that IMF will postpone the next tranche of the stand-by agreement, scheduled for December 15 (…) if we see signs that the programme agreed with IMF derails, there will be negative pressures over the rating,” he stated, Mediafax informs.

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