The last report of IMF experts, published on Friday on the official webside of the Fund, made after the last IMF visit in Romania analyzes the evolution of the economy until the end of the first quarter and notes the expectations for the following period. The two targets that were not reached - the budgetary deficit and the state's debt to the private environment were caused by the tension on increasing spending and collecting revenues which was lower than expected.
Authorities plan to decrease the level of public debt to the private environemtn by restructuring the health sector at the central level and by signing swap agreements to compensate debts between local and private companies, the document reads.
To reach the 6.8% budget deficit at the end of 2010 the GDP must be adjusted by 2.3%, the IMF report reads. The document reads that the IMF and Romanian officials talked about several ways to adjust based on revenues and spending. Authorities opted for a package based on cutting spendings.
