Prima pagină » English » IMF: Romania To Slash 250,000 Public Jobs On Medium-Term

IMF: Romania To Slash 250,000 Public Jobs On Medium-Term

The number of public employees in Romania should be reduced by 250,000 people on the medium-term to match the numbers before 2006, an official of the International Monetary Fund said Monday.
IMF: Romania To Slash 250,000 Public Jobs On Medium-Term
10 mai 2010, 11:36, English

„Over the past three years, precisely between 2006 and 2008, the public sector added 250,000 employees. The figures must be reverted (to the ones before 2006). This can be done over a period of several years, not necessarily in just one year,” said Jeffrey Franks, head of the IMF mission to Romania.

Speaking in a news conference, Franks said Romania’s letter of intent to a EUR13 billion loan with the IMF doesn’t specify an exact number of layoffs in the public sector for 2010, but added the layoffs are implicit.

Romania has cut a little over 36,000 jobs in the public sector between December 2008 and February 2010, bringing the total number of jobs to 1.36 million, according to Finance Ministry data.

Last week, President Traian Basescu announced the government will reduce public salaries by 25%, while pensions and unemployment benefits will be lowered by 15% each.

The measures should be implemented ahead of an IMF board meeting in June regarding the disbursement of a fifth loan installment to Romania, worth EUR850 million.

Romania’s loan agreement with the IMF is part of a larger EUR20 billion package that includes funds from the European Commission, the World Bank and other foreign lenders.

Joint teams from the IMF, EU and the World Bank were in Bucharest until May 10 for the fourth review of Romania’s progress under the loan agreement.