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Croitoru (BNR): A delay of adopting euro by 1-2 years would not be a problem

A 1-2 year delay of adopting euro in Romania would not be a problem, on condition that this delay could reflect an increase of the quality of adjustments which should be made to fulfill criteria, says Lucian Croitoru, councilor of the BNR governor.

Croitoru declared on Thursday, at an economic seminar at BNR that it is more important for Romania to remain competitive after entering euro area than the exact date of adopting the single European currency. Romania intends to adopt euro in 2015, but after the worsening of the economic context it could only fulfill one criterion requested by EU for the euro area, that of having a public debt below 6.0% of GDP.

Romania might miss target of budget deficit in 2010 and continue economic downturn in 2011

Romania could 'derail' by 0.4 - 0.5 percent of the GDP compared to the budget target deficit for 2010 and continue its economic downturn next year, as well, warned on Thursday Lucian Croitoru, Romania's National Bank (BNR) adviser, in a symposium on financial crisis.Romania planned to attain a budget deficit of 6.8 percent of the GDP in 2010, of 4.4 percent in 2011 and of 3 percent of the DGP in 2012. An economic decline of 1.9 percent is estimated this year and next year an economic growth of 1.5 percent.In Croitoru's opinion, Romania's Gross Domestic Product will not change a lot next year compared to 2010, and the budget deficit targets for the next two years will be also difficult to attain.Croitoru also said that, if the economic downturn exceeds two percent this year, the budget deficit target could be missed by 0.4 - 0.5 percent of the GDP, but this does not mean that the agreement with the International Monetary Fund will be in danger.Asked if Romania could register economic growth in 2011, Croitoru said 'it is possible'.

A New IMF Deal To Ensure Lower Borrowing Costs

Romania needs additional financing from international lenders and a new agreement with the International Monetary Fund would ensure lower borrowing costs, according to Lucian Croitoru, adviser to the central bank governor Mugur Isarescu. 'In my opinion, the new agreement with the IMF should be a precautionary agreement, as it would give us credibility and lower costs,' Croitoru told a central bank seminar Thursday.Croitoru said the authorities haven't set the value of a new loan agreement with the IMF, nor have they established if the new accord would include funds from the European Union.A precautionary agreement sets a loan value but disbursements are drawn only when needed.The EU will contribute to any new financial agreement Romania might decide to sign with the International Monetary Fund in the future, a European Commission official said Wednesday.

Romanian President Traian Basescu said recently that the country plans to enter a new loan agreement with the International Monetary Fund in 2011.Official discussions will be carried out during a joint mission of the IMF and EU in October.In 2009, Romania and the IMF signed a EUR13 billion two-year standby agreement, part of a larger aid package which includes funds from the EU, the World Bank and other foreign lenders.

Sursa: http://www.actmedia.eu

Tags: croitoru romania deficit budget percent agreement international economic could adopting euro would bnr delay

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