IMF: Romania Can Meet 2011 Deficit Target Without New Budget Action

"If Romania maintains the current measures throughout the next year, there will be no need for additional action to reach the budget deficit target of 4.4% of the gross domestic product," Franks told a news conference.

However, public expenditure should be kept under a firm leash, he added.

The authorities in Bucharest recently announced a series of austerity measures to boost revenue and contain the budget gap below 6.8% of GDP in 2010, including a 25% cut in public wages and a 5 percentage point increase in the value added tax level to 24%.

Romania and the IMF last year signed a EUR13 billion loan agreement, part of a larger EUR20 billion aid package that includes funds from the EU and other international lenders.

Joint teams from IMF and the EU arrived in Bucharest July 26 for the fifth review of Romania's agreement.

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