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Romania Must Revise Salary, Pension Sys In 2 Yrs – IMF

Romanian government has to revise in two years, with international assistance, the pensions system and salaries in the public sector, as well as the monitoring and control procedures for state-owned companies, Jeffrey Franks, the head of the IMF mission to Romania, said Wednesday.
Romania Must Revise Salary, Pension Sys In 2 Yrs - IMF
25 mart. 2009, 11:19, English

Salaries in the public sector doubled in a three-year period, Franks said in a news conference.

Franks said the public salary system has to be less based on bonuses, which should not exceed 25% of the salary.

The IMF official also stated that, at the same time, the government will have to implement a fiscal responsibility law to avoid new budget deficit increases.

Romania has agreed an economic program with the International Monetary Fund supported by a EUR12.95 billion loan under a two-year standby arrangement.

The total value of the financial package including loans from the European Union, the World Bank and other financial institutions is EUR19.95 billion.