“We do not believe the Romanian authorities will be able to secure a new IMF agreement, as they aim to do, ahead of next year’s elections, given the poor track record of reviews for the previous deal and the widening path of the 2016 budget gap,” according to an ING note for investors and analysts.
Tuesday’s weekly government meeting could offer some information on fiscal change, including on public sector wage hikes, just as the IMF has started a new mission in Romania, according to ING economists.
Finance Minister Eugen Teodorovici announced Tuesday the start of the talks with the IMF mission, focusing mainly on the 2016 budget, structural reforms, as well as a new, more flexible, IMF agreement.
Teodorovici added that an agreement with the IMF might represent an advantage for Romania, especially given the current international context.
The talks are set to end on October 20 and discussion topics could include future fiscal plans, the 2016 state budget plan, structural reforms and the upcoming budget revision.