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IMF Urged Romania To Gradually Reduce Salary Fund To 5% Of GDP – Sources

Romania’s public salary fund should be gradually reduced to 5% of gross domestic product, from current 8%, over the next four years, following talks between officials of the International Monetary Fund and the Romanian government, official sources said Sunday.
IMF Urged Romania To Gradually Reduce Salary Fund To 5% Of GDP - Sources
29 mart. 2009, 20:12, English

Jeffrey Franks, head of the IMF delegation in Romania, said on March 25 that Romania’s public salary fund should decrease as weight in the GDP in the upcoming period, adding that the salary fund currently stands at 8% of the GDP.

According to the IMF official, the Romanian government should revise in two years, while assisted by international bodies, the pension and wage system in the public sector, as well as the monitoring and control procedures for state-owned companies.

Franks pointed out that public sector wages doubled in a three-year period and stressed that Romanian authorities should draw up the unitary pay law.

Romanian President Traian Basescu said Sunday, at the congress of the National Federation of Trade Unions in the Local Public Administration "Publisind," that the economic crisis will not affect low wages and pensions, which should see slight increases even in times of crisis.

Basescu also said that following talks with the International Monetary Fund, Romania accepted the Fund’s forecast, which sees Romanian economy contracting by 4% in 2009.