Brussels, 05/11/2013 (Agence Europe) - The International Monetary Fund and the European Commission say that the structural adjustment programme being implemented in Romania in exchange for a preventive credit line of €2 billion (see EUROPE 10949) is broadly on track.
Real GDP growth in 2013 has strengthened on the back of strong agricultural output and robust export performance, and is now projected to reach 2.2% and the same figure is forecast for 2014. An increase in domestic demand is expected to compensate for slower export growth. Despite a deterioration in the quality of bank assets, the country's bank system is robust. The nominal budget reduction target has been set at 2.5% of GDP for 2013, and the Romania government pledges to reduce the structural deficit by a percentage point in 2014, while taking account of the additional needs for co-financing from the country in order to absorb a larger share of the EU structural funds. The IMF and Commission welcome the sale of 15% of public energy company Romgaz, while regretting the failure to privatise the national freight company, CFR Marfa. (MB/transl.fl)