Gov’t has convinced IMF to maintain 1.4 pc deficit target of GDP, sources say

International Monetary Fund (IMF) representatives agreed a budget deficit of 1.4 percent, following negotiations with the Romanian authorities, sources for hotnews.ro said. Victor Ponta Government convinced also IMF-EC delegation to get exemption for European projects co-financing and for the Army.

According to executive officials, in a first phase IMF would have required the government a deficit target of 0.9 percent, but the information has not been confirmed by foreign lenders.

Earlier on Monday Prime Minister Victor Ponta announced the 2015 draft budget will most likely be referred to Parliament on Friday morning. According to the schedule mentioned by Ponta, the budget is supposed to be put up for vote on the same day President-elect Klaus Iohannis takes the oath in Parliament (on December 21 — ed. note).

“I’ll call PNL co-Chairman Mr. Blaga and the group leaders to let them know about the budget provisions. Beyond their political decision to vote against it, I think this moment requires all MPs to be in the know of the budget provisions, and also requires us to be able to consider a debate in Parliament and adopting a set of medium and long-term measures related to the Tax Code, the Tax Procedure Code, the Royalty Law, in a political system that ensures predictability and stability in the years ahead. More directly, I don’t want the bill to be passed only by the current majority (…), I want us to prove Romania’s capability to be stable from the fiscal and budgetary viewpoint over a period that runs beyond a simple electoral cycle,” explained Victor Ponta.