Basescu: We will not be able to meet parameters established with IMF in H2Publish date: 31-07-2009
Romania will not be able to meet the parameters established for the second half of this year with the International Monetary Fund (IMF), because of the economic crisis, Romanian President Traian Basescu on Thursday told a public radio station.
'Romania will not interrupt the arrangement with the IMF, this is totally out of question. The parameters corresponding to the first six months of the year showed that Romania did observe its commitments with the IMF. Nevertheless, we will most probably not be able to meet the parameters in the second half of the year,' Basescu said.
The head of the Romanian state presented also the causes expected to generate the trouble in the second half of the year, with one of these causes was the fact that an economic recession bigger than 4 percent (the value estimated initially) was expected.
'The most significant reason is that we will probably see a more significant economic downturn than estimates, higher than 4 percent, and that's why we need to set things clear right now. If we will have an economic downturn higher than 4 percent, with money to the budget to fail estimates too, this means a higher deficit higher too and that we will be forced to find ways to compensate this deficit, so that to keep it somewhere around 4.6 percent. Our interest is to maintain the parameters, so as to be able to enter the euro area on January 1, 2014, as scheduled' Traian Basescu said.
The head of the state also voiced hope the IMF 'will understand the situation' in Romania, with the specialists of the Fund being quite aware Bucharest cannot be blamed for all that is about to happen.
'I believe the Fund will show reason, for they are specialists and there is no need we ask them for sympathy, they understand the economic realities without our help, while Romania will be able to prove in its tun it the economic fall higher than 4 percent will not be its fault, but it will be because of the international circumstances that are blocking the exports, on one hand and, on the other hand, because of the drop in the domestic consumption, for Romanians have become more cautious in spending their money. These are two elements no Government will be able to fight against, but it will only be able to seek for solutions to compensate these realities,' Traian Basescu said.
The first mission of the International Monetary Fund (IMF) after the conclusion of the arrangement with Romania arrived on Wednesday in Bucharest, where it is to stay until August 10. The mission is headed by Jeffrey R. Franks and will make public its conclusions after the abovesaid interval.
The experts from the IMF are going to meet both the representatives of the authorities and of the trade unions, the business associations and the representatives of the banking system. The representatives of the European Commission and of the World Bank will participate in these meetings too.
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