Romania’s Announced Wage Cuts Not Our Proposal, IMF Says

An IMF team is currently in Bucharest for the fourth review of Romania’s EUR13 billion loan agreement signed in the spring of 2009.

The announced measures will be discussed with the Romanian government as part of the mission, IMF said.

Romanian President Traian Basescu Thursday said the government’s program to reduce spending and boost revenue entails a 25% cut in public salaries, 15% lower pensions and limited subsidies, particularly in agriculture.

In addition, unemployment benefits would decrease by 15%.