Romania sets EUR 1.3 bln budget deficit target for Q1 next year in IMF letter of intent

Romania and the International Monetary Fund have agreed on a budget deficit target of 1.3 billion for the first quarter of next year, one third lower compared to the same period of 2010. The authorities in Bucharest pledged to cut the budget deficit to 4.4 percent of the gross domestic product in 2011, from 6.8 percent of GDP predicted for this year, according to the government's additional letter of intent to a EUR 13 billion loan signed with the IMF in 2009. Romania's draft budget for 2011 envisages a deficit of EUR 5.5 billion, lower from 8 billion in 2010. Budget revenues are forecast at EUR 41 billion, while expenditure is predicted at 46 billion. Mediafax