According to the release, president Klaus Iohannis said he is concerned about vulnerabilities that may affect the country’s fiscal and budget framework.
A delegation of the IMF is in Romania to discuss the country’s state budget structure for next year, following a precautionary agreement that expired in September. Romania met its economic indicator goals but has missed structural reform targets under the agreement.
Romania’s government said late September the country will seek a new, more flexible agreement with the IMF, focusing on implementing structural reforms rather than reigning in the budget deficit. The country’s central bank also said it supports a new agreement, which would lend credibility to the country.
However, analysts with ING Bank Romania said in a note last week the country is not likely to secure a new agreement with the International Monetary Fund (IMF) ahead of the elections in 2016, as planned by authorities, given the poor track record of reviews for the previous deal and the widening path of the 2016 budget gap.