Last years fiscal gap reached 2.5%, missing the target agreed with the IMF by a slight RON0.1bn. The small difference and the fact that the slippage was induced by smaller EU funds inflows, mainly due to the blocking of some key EU funds programs, this should not complicate the discussions for a successor Stand-By Arrangement. On a similar note, the PM has asked to extend the current SBA by two more months, which would mean to the end of May, to allow additional space for Romania to comply with the restructuring and listing of some SOEs, as agreed with the IMF. This sounds marginally positive, but it also forces a fairly fast restructuring effort of the state owned companies, something which missed, might imply some real frictions between Romania and the IMF.

Source: bne