Romania’s Finance ministry requested the IMF to allow a higher deficit target in the first two quarters of 2011 for investments. The requested target for the first quarter is 8 billion lei, Finance minister Gheorghe Ialomitianu declared. The government agreed with the IMF a budgetary deficit target for the first quarter of 5.7 billion lei.

Ialomitianu said that the new deficit target for the second quarter was not negotiated but said that the 2011 budgetary deficit remains 4.4% of GDP, representing 24 billion lei. Regarding the new agreement with the IMF, Ialomitianu said that it will be a precautionary agreement and it is not about a loan. An IMF and EC mission will arrive in Bucharest to discuss the new agreement and its requirements.