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Traian Basescu: IMF recommends a 5% personnel cut of budgetary personnel

de Radu Rizea
Marţi, 31 martie 2009, 22:04 English | Business

Romania President Traian Basescu declared on Tuesday that the International Monetary Fund recommended Romania a 5% decrease of the number of employees in the budgetary system. The head of state says that decreasing the public expenses by 1.1% in 2009 may be accomplished by freezing wages and by reducing, step by step, the bonuses to 30% of the salary.

The president emphasized that the 2009 budget will take into account the most pessimistic prognosis, of a 4% contraction of the economy.

The agreement with the IMF allows the business environment to use the cash on the market, instead of having it absorbed by the state budget, Basescu said, during a meeting with the presidents of the Romanian chambers of commerce. "Not one Euro from the IMF funds will go to salaries or bonuses", Basescu added.

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