The problems related to the 5% VAT for food products and no taxes for pensions below 2,000 lei needs to be resolved by November 1, when the IMF ends its mission in Romania, IMF Romania chief of mission Jeffrey Franks declared.

This is a problem that needs to be resolved during this mission, Franks declared, quoted by the Romanian news agency Mediafax. On the other hand, he aded that macroeconomic indicators for the third quarter look good.

The deficit target was touched to certain limits and we are optimistic for the rest of the year, he said. He added that the 2011 deficit target will not be modified and will remain 4.4 % as initially set.

UPDATE PM Emil Boc assured the IMF officials that the situation will soon be resolved, governmental sources said, quoted by Mediafax.