Romanian PM To Meet With IMF Experts Saturday – Sources

This will be Boc’s first meeting with the current review mission from the IMF, which has recently decided to extend its visit in Romania until May 9 and to continue negotiations in Bucharest over the weekend.

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.

Basescu stressed that Romania is forced to drastically cut public spending to avoid raising its main taxes and called on unions to assume their part of the responsibility for the allotting of funds in public institutions.

Romania’s recession-hit economy contracted by 7.1% last year, after three years of annual growth of nearly 8%. This year’s budget gap must be narrowed to 5.9% from 7.2% last year, to meet the terms of a EUR20 billion IMF-led bailout loan.

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