Romania Freezes Early Retirement, Limits Retirement For Incapacitated People

Freezing early retirement is part of the country’s spending cut program agreed on with the International Monetary Fund and the European Union.

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 a loan agreement. The IMF will only disburse the fifth tranche of a EUR13 billion stand-by agreement after the government implements cost cutting measures.

The government announced recently it would slash public salaries by 25% and pensions by 15% in order to keep the deficit in the new cap agreed with the IMF.

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.