Thursday, July 30, 2009

Romania govt to unveil 2010 budget draft by Sept

BUCHAREST, July 29 (Reuters) - Romania's center-left government plans to draft the 2010 budget bill by Sept. 1, Prime Minister Emil Boc said on Wednesday.

Romania, which has secured 20 billion euros in International Monetary Fund-led loans, has agreed to a budget shortfall ceiling of 4.6 percent of gross domestic product for 2009, but ruling coalition officials have said the country will ask the Fund to allow it run a higher gap.

Starting on Wednesday, the IMF will spend two weeks checking Bucharest's progress on shoring up its bloated finances and reforming the public sector, key conditions for aid secured in March to prevent a financing crisis.In order to ensure IMF aid continues, Boc's cabinet will have to introduce sweeping fiscal reforms, including spending cuts and pay transparency.

Without aid, Romania could face a financing crisis if investor sentiment is damaged and its public deficit spirals out of control amid a deepening recession.

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