No Cuts On Romanian Public Sector Salaries, Govt Has Other Solutions – Acting PM

Boc told the IMF delegation Thursday that the Government has fulfilled all its commitments before October 1 and that it is now up to the Parliament to carry out its obligations.

Romanian democrat liberal leader Theodor Stolojan said Friday on Realitatea FM radio that retirees and employees in the public sector might receive reduced pensions and wages due to the current political context and taking into account the country’s relation with the International Monetary Fund.

In response to a question regarding the country’s ability to pay wages and pensions without the third disbursement from the Fund, Stolojan said the current Government will have to mull over the problem and take drastic measures to cut expenses with wages and pensions, adding public sector employees and pensioners might receive reduced wages and pensions until the country is set back on track.

„Cartel Alfa” union official Bogdan Hossu told MEDIAFAX Friday that salaries and pensions may not be reduced, but that, at worst, they could be paid in two installments.

A mission of the International Monetary Fund met Thursday evening with Prime Minister Emil Boc to talk about the two-year standby arrangement for EUR12.95 billion and the country’s economic progress. The IMF standby loan is part of a wider EUR19.95 billion aid package the country took from the EU, the World Bank and other foreign lenders to cope with the recession.

Romania has so far received around EUR7 billion from the IMF.