Ascultă Radio România Actualitaţi Live

Government "will respects commitments undertaken to the IMF"

Government spokesman said Ungureanu cabinet ministers have endorsed the targets of the Letter of Intent with the IMF and try to clarify their objectives with the IMF officials

Government "will respects commitments undertaken to the IMF"
Prime Minister Mihai Răzvan Ungureanu and the head of IMF mission to Romania, Jeffrey Franks. Photo: Agerpres.

Articol de Sergiu Şteţ, 23 Februarie 2012, 07:23

Head of IMF mission to Romania, Jeffrey Franks, met on Wednesday with representatives of the new government.

Official talks aimed at Romania's economic situation and international context.

Ungureanu government announced it would respect commitments of the previous cabinet in talks with the IMF.

Under the preventive agreement concluded with the IMF, Romania's budget this year will be to record a deficit of more than 1.9% of GDP.

IMF official talks are scheduled in April, but unofficially the current government is to discuss problems they may encounter Romania's economy by then.

"Ministers have endorsed the goals of the Letter of Intent with the IMF and trying to clarify all these goals with officials of the Fund.

"We have new ministers, that currently have to negotiate and carry out the letter of intent and its objectives," said government spokesman, Dan Suciu.

Government needs to get more money

Calculations that was built this year's budget based on a prognosis of economic growth of 2.1% of GDP.

Romania’s economy may still suffer from the problems faced by other European economies.

Earlier this month, the IMF reduced its prognosis for Romania's economic growth this year to 1.5-2% of GDP.

Even in an optimistic scenario of IMF prognosis for Romania the economic growth of 2% would be below the increase that was built on budget.

There are even more pessimistic prognosis , such as the European Bank for Reconstruction and Development.

EBRD reduced its prognosis for Romania to 1.1% of GDP.

Decreased growth expected this year would reduce government revenues.

Every percentage point less to economic growth translates into a reduction in budget revenues by about 400 million Euros.

In such circumstances, Romania would be forced to cut spending or increase the budget deficit, the difference between revenues and expenses.

By increasing the budget deficit, Romania would not meet the commitment in this regard but the preventive agreement with the IMF.

Another solution would be to increase the collection of revenues.

Recently, Prime Minister Mihai Răzvan Ungureanu called on the authorities reducing tax evasion by approximately 1.5% of GDP.

Construction budget also based on an assumption has quite difficult: to attract six billion this year from the European Agriculture Funds and Cohesion Funds, too.

IMF cuts its growth estimates for the Romanian economy
News in English 22 Aprilie 2025, 23:15

IMF cuts its growth estimates for the Romanian economy

The International Monetary Fund has lowered its growth forecast for the Romanian economy this year to 1.6%, down from 3.3% in...

IMF cuts its growth estimates for the Romanian economy
EC: TikTok has made extra preparations to better manage the May elections
News in English 22 Aprilie 2025, 23:14

EC: TikTok has made extra preparations to better manage the May elections

The European Commission is continuing to work with the online platform TikTok to ensure that there will be no breaches of EU...

EC: TikTok has made extra preparations to better manage the May elections
The fire in Arges "could not have started by natural causes"
News in English 21 Aprilie 2025, 19:01

The fire in Arges "could not have started by natural causes"

The IGAV's two Black Hawk helicopters withdrew last night after dropping 240 tons of water, a vital aid because the...

The fire in Arges "could not have started by natural causes"
Financing guide under the "Rabla for tractors" program published
News in English 21 Aprilie 2025, 19:00

Financing guide under the "Rabla for tractors" program published

This week, another necessary step of the "Rabla for tractors" program was completed - the publication of the...

Financing guide under the "Rabla for tractors" program published
A new multinational exercise on Romanian territory
News in English 17 Aprilie 2025, 21:30

A new multinational exercise on Romanian territory

Around 4.000 soldiers, with over 900 technical means, from 10 allied countries will take part next month in a new...

A new multinational exercise on Romanian territory
The National Audiovisual Council has removed several videos posted online
News in English 17 Aprilie 2025, 21:29

The National Audiovisual Council has removed several videos posted online

The National Audiovisual Council has removed in recent days a number of illegal online materials from TikTok, Facebook and X....

The National Audiovisual Council has removed several videos posted online
"Romania is and will remain a pillar of transatlantic cohesion on NATO's Eastern flank"
News in English 16 Aprilie 2025, 18:45

"Romania is and will remain a pillar of transatlantic cohesion on NATO's Eastern flank"

After the talks with the delegation of American congressmen, Prime Minister Marcel Ciolacu emphasized in a press release that...

"Romania is and will remain a pillar of transatlantic cohesion on NATO's Eastern flank"
Recently recovered Dacian bracelet on display at the National Museum of History
News in English 16 Aprilie 2025, 18:44

Recently recovered Dacian bracelet on display at the National Museum of History

From Wednesday, April 16, another Dacian gold bracelet, recovered by Romanian judicial authorities at the end of last year,...

Recently recovered Dacian bracelet on display at the National Museum of History