IMF to conduct a third review under Romanias SBA this month
The political pressures that led to the split of the governing coalition is putting the disbursement of the third tranche under the stand-by arrangement with the International monetary Fund at risk, economists with UniCredit said.
International Monetary Fund will carry out a third review under Romania’s stand-by arrangement in order to assess the Romanian economy’s performances and to which extent the country has managed to contain economic indicators within the agreed target ranges. Bogdan Baltazar says Romania has met IMF conditionality, while other analysts have a more pessimistic view.
“On a short term, we expect international institution to adopt a stand-by mode (e.n: towards the political tensions in Romania). The only risk is that the disbursement of the next tranche could be postponed, we don’t see a complete disruption of the external financing program”, UniCredit said in a report released yesterday.
UniCredit sees a budget gap of 7.3% of GDP for this year, same as IMF, and 6% deficit for 2010. For 2011, the budget gap is likely to narrow to 5% of GDP.
International Monetary Fund will carry out a third review under Romania’s stand-by arrangement in order to assess the Romanian economy’s performances and to which extent the country has managed to contain economic indicators within the agreed target ranges. Bogdan Baltazar says Romania has met IMF conditionality, while other analysts have a more pessimistic view.
“On a short term, we expect international institution to adopt a stand-by mode (e.n: towards the political tensions in Romania). The only risk is that the disbursement of the next tranche could be postponed, we don’t see a complete disruption of the external financing program”, UniCredit said in a report released yesterday.
UniCredit sees a budget gap of 7.3% of GDP for this year, same as IMF, and 6% deficit for 2010. For 2011, the budget gap is likely to narrow to 5% of GDP.