IMF warns Romania on pension changes
The International Monetary Fund criticized Romania on Friday for plans to raise pensions sharply, saying the move is likely to stoke inflationary pressures and give a new boost to the current account deficit, Reuters reported.
The Romanian parliament cleared a draft law on Thursday nearly doubling state pensions in the next two years. The government also plans to lower social security contributions by 6 percentage points in 2008. “While we understand pensions are low, fiscal decisions need to recognize there is a budget constraint and should not be taken in isolation of the macroeconomic environment,” the IMF's senior regional representative Juan Jose Fernandez-Ansola told Reuters in written comments. (mediafax.ro)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.