A team of the International Monetary Fund (IMF), led by the head of the IMF mission for Romania, Jan Kees Martijn, will virtually visit Bucharest, between May 10 and 28, for the annual analysis of the Romanian economy, known as the Article IV Consultation, Economica.net reported.

Currently, Romania does not have an ongoing financing agreement with the International Monetary Fund. Rumors about an imminent support program were circulated during the electoral campaign by the opposition Social Democrat Party (PSD), but former prime minister Ludovic Orban and finance minister Florin Citu (who followed him at the head of the Government) firmly rejected such allegations.

The fiscal deficit remains Romania’s main macroeconomic challenge, with the public gap nearing 10% of GDP last year.

However, all the three major rating agencies have maintained the country in the investment-grade area this spring, although with a negative outlook, thus expressing confidence in the Government’s commitment to more sustainable public policies.

Despite this, there is growing uncertainty about the means envisaged by the Government for boosting the budget revenues (in addition to cutting or stabilizing expenditures) - as this was pointed as a critical issue in the fiscal consolidation approach.

andrei@romania-insider.com

(Photo source: Shutterstock)