Romania's 2011 Budget Gap Still Above EU Criteria - IMF

The IMF estimates Romania's budget deficit will reach 7.3% of the GDP in 2009 and 5.9% of the GDP in 2010, according to the fund's report published after the first review of the EUR13 billion stand-by loan Romania secured in spring.

Last year, Romania recorded a budget deficit of 4.9% of the GDP, which prompted the European Commission to launch an excessive deficit procedure against the eastern European country.

End June, the EU finance ministers asked Romania to take corrective measures and bring the budget gap to below 3% of the GDP by 2011.

Romania, which hopes to join the eurozone in 2014-2015, must register a deficit below 3% of the GDP in the years prior to the adoption of the European common currency.

In spring, Romania has inked an agreement with the IMF, the EU and other international lenders for a EUR20 billion financial package, supported by a EUR13 billion stand-by loan from the fund.

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