Romania Agrees With Bailout Lenders on Increasing Budget Gap
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The International Monetary Fund completed a review of Romania’s loan accord and agreed to let the country widen its budget deficit to accommodate a public-sector wage increase after a third government took office this year.
The IMF and Romania reached a staff-level agreement to unlock about 475 million euros ($616 million) from its 3.6 billion-euro precautionary loan, Mission Chief Jeffrey Franks said in Bucharest today. The IMF also agreed to let Romania increase its budget-gap target to 2.2 percent of economic output from 1.9 percent.