Romanian Pres Asks Ministers Not To Exceed Wage Fund, Dreads Neg Budget Revision Soon

The head of state said Romania meets all conditions to enter recession, adding that, under these circumstances, a new negative budget revision is highly likely somewhere in August or September.

Basescu pointed out that the International Monetary Fund stand-by loan would only be used for investments, adding that if Romania borrows money to pay salaries, then, it should be prepared to face an economic and social sideslip.

He also stressed that the country’s economy might recover only in the third and fourth quarters of the year.