Romania To Set Restrictive Salary Policies, In Line With IMF Pact- FinMin Designate

„The salary and social policy will unfortunately be restrictive for at least three years to come, which will of course be compensated with social measures for people with low and very low income,” Vladescu said. He added „the social balance will be very important in 2010.”

Vladescu sees the amount spent on salaries and social care is too high as a share of the country’s gross domestic product GDP, even at the level of the European countries.

Despite his previous criticism over the stand-by agreement with IMF, Vladescu admits the loan conferred stability to the local currency in 2009 and the possibility to finance the budget deficit at reasonable costs. Also, he recognizes the further benefits of the loan in 2010.

Vladescu also hopes the country’s rating will improve in 2011 and even 2010.

Moody’s is the only major ratings agency that still has Romania on a stable, investment-friendly recommendation, after both Fitch Ratings and Standard & Poor’s Corp. downgraded their sovereign ratings on Romania to „junk” last year.