AOAR Requests Budget Redirection To Energy And Infrastructure

F.A.
Ziarul BURSA #English Section / 19 martie 2007

The Businessmen"s Association of Romania (AOAR) is asking that the available funds resulting from the 2.8% deficit stipulated in the Y2007 national budget be allocated to priority energy and infrastructure projects, according to an AOAR press release.

The request followed the IMF recommendations that Romania maintain a budget deficit of less than 1%, which AOAR believes to be unwarranted. AOAR representatives met with the IMF delegation and advocated the need to finance major road infrastructure projects claiming that the poor quality of Romanian roads was causing losses of some 2% of the GDP.

Moreover, AOAR also believes fast and substantial investments in the energy industry and food industry are necessary in order to cut the trade deficit. AOAR also disproves of the National Bank decision to maintain a benchmark rate of 8% considering that the inflation rate is 5%. In AOAR"s opinion, this is attracting speculative funds that put unjustified pressure on the exchange rate.

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