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Romania Has Enough Funds To Pay Wages, Pensions – Fin Min

Romania has enough resources to pay pensions and salaries in the public sector, despite the economic crisis, Finance Minister Gheorghe Pogea said Monday.
Romania Has Enough Funds To Pay Wages, Pensions - Fin Min
21 sept. 2009, 20:36, English

He said Romania has met so far the terms negotiated under a EUR12.95 billion loan agreement with the International Monetary Fund, and the institution has no reason to deny it a second installment this fall.

„As long as we’ve done our job, I don’t believe the IMF would see fit something else other than to grant this loan (the second tranche – e.n.),” Pogea said.

Romania has already received EUR5 billion from IMF money in spring and is due to get another two installments amounting to EUR3.4 billion by yearend, subject to the fund’s Board approval

According to Pogea, the government will use the next two installments to finance the consolidated budget deficit, aiming especially at the investment sector.

Romanian President Traian Basescu said last week that the country asked the IMF to allow it use the second installment to boost the state budget and pay due salaries and pensions instead of putting the money into central bank’s reserves.

The IMF’s board is expected to announce later Monday the conclusions of a first review on Romania’s progress following the loan agreement.