Thursday, October 1, 2009

Romania deficit to stay below IMF Q3 ceiling -finmin

BUCHAREST, Oct 1 (Reuters) - Romania's consolidated budget deficit will stay below an IMF-agreed target of 5.4 percent of gross domestic product at the end of the third quarter, Finance Minister Gheorghe Pogea said on Thursday.

Pogea's comments followed the Social Democrats' decision to walk out of the coalition cabinet with the centrist Democrat-Liberals in protest at the sacking of a key minister, raising the risk of failure to meet IMF conditions for aid.

'We will respect our commitments,' Pogea told Reuters by telephone. 'We have noticed some rise in revenues so we are confident the deficit will be below the IMF's ceiling.'The deficit rose to 4.5 percent of GDP in the first eight months of the year, as the economic contraction pummell
ed tax receipts. Romania targets a 7.3 percent gap this year.

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