BNR and FinMin officials negotiate with IMF and EC experts

International experts presented the result of their evaluation to President Traian Basescu on Tuesday, which estimates a four percent drop in gross domestic product (GDP), and a budget deficit of 4.7 percent. The total value of the loan would amount to RON 18 billion (some €4.19 bln). Prime Minister Emil Boc said that the government will insist during negotiations with the IMF on maintaining the levels of the flat tax and the value-added tax (VAT).

According to Tim Ash, Royal Bank of Scotland (RBS) analyst, an agreement with the IMF will not automatically lead to an increase in Romania’s rating by international agencies, but could prevent further short-term drops, as the global slowdown will have a major impact on the real economy.