The IMF should relax budgetary gap targets for Romania so thatmore EU projects could be co-funded, states Andreas Treichl, a CEOwith Erste Group, which controls BCR.
"Romania is in a situation of conflicting objectives: its strongadvantage are the funds available from the EU, but governmentalfunding is also necessary for these funds to be used. If money fromthe budget is allotted, deficit targets agreed on with the IMF areovershot and a conflict of 'interests' emerges. The IMF could relaxthe targets for the European funds to be used. This will be a veryinteresting exercise in the following months," Treichlstated.
Banks have a direct interest in the success of such a move,considering many entrepreneurs and public authorities need loans tobe able to co-fund the European funds they try to get.
It remains to be seen whether the banking lobby in this respectwill be as strong as in the case of modifications requested forOrdinance 50 regarding retail loan contracts.
