Romania Won’t Renegotiate IMF Deal – Fin Min

„We won’t renegotiate the agreement, but we will try to balance our objectives with our partners’ targets, and supplement the funds for development,” Vladescu said Tuesday.

„There is an opportunity to support investments, which will not necessarily imply a higher budget deficit,” the minister said.

Under the IMF deal terms, Romania has to bring the budget deficit to 5.9% of the gross domestic product in 2010, from more than 7% of the GDP last year.

Vladescu said Romania will report a positive economic growth in 2010, without indicating any specific figure.

The 2010 budget, which is currently debated by lawmakers after the government adopted it in the last days of 2009, is based on a GDP growth estimated at 1.3%.

Romania’s economy is expected to have contracted by around 7% in 2009, after several years of strong growth.

In the spring of 2009, Romania agreed with the IMF on a EUR13 billion stand-by loan, as part of a EUR20 billion financial package that includes funds from the European Union and other international lenders.

Romania has received so far around EUR7 billion in two tranches from the IMF. A fund mission is scheduled to arrive in the second part of January to complete a review of the agreement that is required for the next disbursement.