IMF: Salary expenses in public sector, 6 percent of GDP

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Romania must reduce salary expenses in the public sector on a medium term (3-5 years), from the current level amounting to 9 percent of GDP to 6 percent of GDP or even less, Jeffrey Franks, head of the delegation of the International Monetary Fund (IMF), told a news conference given in Bucharest on Monday.

He explained that these reductions could not be made very quickly, they take 4-5 years with a decrease of 0.5 percent of GDP every year.

The head of the IMF mission mentioned that he did not ask the Romanian Government to dismiss a number of 150,000 budget employees or another number.
The IMF discusses the budget deficit and the need to reduce expenses but does not suggest the means by which this can be made, concluded Franks.

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