IMF: Romania Cut 30,000 Public Sector Jobs; Teachers Are Next

Franks said teachers should prepare for a new wave of layoffs in September, when a restructuring of the educational system is slated to kick off.

"The Government is on track to meet that target (of 70,000 layoffs by early 2011 - e.n.). We expect that in September there is a restructuring of the educational system where a number of teachers are going to be reduced and there will be continued restructuring between now and the end of the year," Franks said.

He said the pace of the wage bill restructuring is up to the Romanian authorities, but staff expenditure should not exceed the 39 billion lei (EUR1=RON4.2527) target agreed for 2011.

"The government's intention is to continue to reduce the number of employees so that they can create space for higher wages for those who stay," Franks said. He added the government estimates thousands additional job cuts besides the 70,000 layoffs announced.

Romania and the IMF last year signed a EUR13 billion loan agreement, part of a larger EUR20 billion aid package that includes funds from the EU and other international lenders.

Under the agreement, Romania pledged to trim public jobs to 1.29 million people from 1.36 million initially and reduce the wage bill to RON39 billion in 2011.

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