Romania’s largest lender by assets BCR has lowered the growth prognosis for the country, to 1.8% for this year, from a previous 2.3%. For next year, the estimation also worsened: 3%, instead of 3.3% forecasted earlier.

BCR analysts believe the budget deficit target the Government has taken on for 2015, of 1.4% of the GDP, is optimistic. “We are skeptical this target will be achieved, especially after the PM’s statements last week about the country’s intention to ask the EU to accept a 2% budget deficit in 2015,” according to BCR’s analysis.

PM Victor Ponta said Romania has to spend some USD 3 billion by end-2014, all covered from the budget, but red tape slows down spending. It has become a tradition for Romania to approve state budgets for the year only in January of February, and the focus is currently on the upcoming presidential elections.

editor@romania-insider.com