Official: Romania 8-Mo Budget Deficit At 4.4% Of GDP -Mediafax

BUCHAREST -- Romania's consolidated budget deficit rose one percentage point in August to 4.4% of gross domestic product, Finance Ministry state secretary Gheorghe Gherghina told news agency Mediafax, citing preliminary data.

He said final data will be released Sept. 25.

At the end of July, Romania's budget deficit stood at 3.31% of GDP.

The International Monetary Fund has agreed to allow Romania a budget deficit of 7.3% of GDP in 2009, higher than the 4.6% cap negotiated this spring, due to a deeper-than-expected economic decline.

Romania's GDP is now projected to shrink 8%-8.5% in 2009, from the 4% economic contraction estimated in the spring.

At the end of March, Romania secured EUR19.95 billion in financial aid from the IMF, the European Union and other international institutions to cope with the deepening recession. The IMF granted Romania a EUR12.95 billion two-year standby loan, as part of the financial package.