„The mission was for IMF to check the results and commitments taken by the Romanian government related to the foreign financing January through June this year, with the second tranche from the loan to Romania scheduled for September depending on these results,” the Minister said.
The IMF and European Commission experts, together with the representatives of the Romanian Government and of the Ministry of Finance will finish the letter of intent probably later in the day.
Negotiations between the Romanian authorities and the representatives of the Fund took more time than expected mainly because the IMF delegation insisted on a severe cut in the budget expenditure being needed in Romania, sources close to the negotiation committee told.
The IMF asking for the cut in the budget expenditure is justified. Nevertheless, there wasn’t decided yet where from to cut and exactly how much.
According to the same sources, the budget deficit has to be kept at the lowest level possible, under the limit of 7.2-7.3 percent of the Gross Domestic Product (GDP).
There will be thus needed reforms to be carried out in the pay and pension system and in the tax system too.