IMF Keeps Romania’s 2009, 2010 Budget Gap Targets Unchanged – Media

The IMF is also analysing an update of its current forecasts for the Romanian economy, which is expected to decline by up to 8.5% this year, followed by a modest growth of 0.5% in 2010, Mediafax (www.mediafax.ro) quoted the head of the IMF mission to Romania, Jeffrey Franks, as saying.

The IMF mission is in Bucharest until November 9 for the second review of Romania's economic performance under the country's 20 billion euro ($29.2 billion) stand-by arrangement with the Fund, the European Union and the World Bank signed in March.

Romania ended last year with a consolidated budget deficit of 24.6 billion lei ($8.4 billion/5.7 billion euro), equivalent to 4.8% of the estimated GDP, calculated under the Romanian accounting standards, and to 5.4% of GDP, under European accounting standards.

Romania, an EU member since 2007, must meet the Maastricht criteria on inflation, public debt, budget deficit, currency stability and interest rates to qualify for the adoption of the euro. The Maastricht budget gap threshold stands at 3.0% of GDP.

(1 euro = 4.3034 Romanian lei)