After tabling a budget plan for 2009 taking into account a 2.5% economic growth projection, Romanian legislators are also considering the possibility of Romania going into recession after the loan talks with International Monetary Fund.
The Minister of Finance takes into account the possibility of Romania going into recession
Minister of Finance, Gheorghe Pogea said, after loan talks with IMF, that Romania was taking into account the possibility of -1% - 1.5% economic growth for this year, stressing that the situation of Romania is less tougher compared to other countries in the region.
Asked about a possible recession in Romania, the Minister of Finance replied: “For the moment, this is not the only variant, but it is in our attention”.
“I think it’s possible to run an economic growth within the -1-1.5% range, although there are countries in the region with -3% or -4%”, said Pogea.
The talks with IMF and EC experts on the loan will continue until they reach a consensus, the minister added.
The talks between IMF delegation and Bucharest authorities are due to continue on Wednesday, following to hammer out the final points of possible IMF program for Romania, “part of a multilateral funding package”, that would involve the contribution of EU and World Bank.
The budget plan for 2009 takes into account on a 2.5% economic growth, however IMF says it is more likely to see a recession.
IMF said in a press release remitted in early February that Romanian economy could sink this years seeing a mild recovery toward the end of 2009, early 2010.
IMF denies disclosure of the rescue package size
International Monetary Fund, who is currently discussing the terms of a rescue package that could help the country mitigate the effects of the current economic crisis, denies disclosure on the possible size of the loan.
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