Romania: First Review Under the Stand-By Arrangement, Request for Waiver of Nonobservance of Performance Criterion, and Request for Modification and Establishment of Performance Criteria; Statement by the IMF Staff Representative; and Press Release on the Executive Board Discussion;

October 8, 2009

Preview Citation

Format: Chicago

Romania: First Review Under the Stand-By Arrangement, Request for Waiver of Nonobservance of Performance Criterion, and Request for Modification and Establishment of Performance Criteria; Statement by the IMF Staff Representative; and Press Release on the Executive Board Discussion;, (USA: International Monetary Fund, 2009) accessed November 21, 2024

Summary

The contraction in Romania’s domestic demand has set off a sharp correction in external imbalances and helped ease pressures on inflation. Real GDP contracted by 7.6 percent in the first half of 2009, compared with 2 percent projected under the program, on account of a sharp drop in domestic demand, especially consumption. This posed a particular challenge for public finances, where weakening revenues required sharp temporary cuts in spending to meet what turned out to be structurally tight targets. Monetary and exchange rate policies will remain anchored on targeting inflation over the medium term.

Subject: Banking, Capital spending, Credit, Current spending, Expenditure, External debt, Fiscal stance, Money, Public debt

Keywords: Bill, Capital spending, CR, Credit, Current spending, Disbursement of SDR, Global, ISCR, Policy implementation, Policy objective, SDR, Staff appraisal, Staff projection, Wage bill target

Publication Details

Pages:

60
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2009/301
Stock No:

1ROUEA2009001
ISBN:

9781451832921
ISSN:

1934-7685

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