An International Monetary Fund (IMF) mission is to meet on Tuesday the members of the Budget, Finance and Banks Committee of the Chamber of Deputies for the annual assessment of the Romanian economy, on the basis of Article IV of the IMF’s Statute, according to a release from the Chamber.
The mission is made up of IMF experts in Washington and is in Bucharest since last week.
Currently, Romania does not have any financing agreement with the International Monetary Fund, but the financial institution assesses the evolution of the Romanian economy annually, on the basis of Article IV.
Following last spring’s visit, the IMF issued a report released in May, reading that the fiscal easing measures included in the government’s plans for 2017-2020 could increase the budget deficit to 6% of GDP by 2022.
At the same time, according to the quoted source, the highest fiscal cost of 2.6% of GDP will result due to the unitary wage law, a measure that should be implemented in line with the necessary fiscal space and should be supported by efforts to reform the public administration.
The regular consultations provided for in Article IV of the Statute of the Fund are a supervisory exercise which is binding on all Member States.