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FinMin Florin Citu : We will not cut salaries and pensions
Florin Citu, the finance minister, declared at Digi 24 on Thursday, that the government did not take into account the scenario of cutting down salaries and pensions , in the context of the economic crisis triggered by the coronavirus epidemic. He also pointed out that they did not discuss about restructuring the budget sector, for the time being.
“We did not take into account cutting down salaries and pensions,” said the finance minister at Digi24 on Thursday.
Asked about a possible personnel restructuring in the budget sector, in the context in which about 800,000 people were included in technical unemployment in the private sector, Citu said the matter had not been discussed.
“No, we are not considering a restructuring of the public system, at the time being,”the minister pointed out , adding that the budget sector was inefficient anyway.
He added that efforts are made to solve the health crisis and talked bout budget rectification next week, to ensure funds for health, equipment, sick leaves.
În his opinion, the country's economy will see a strong rebound in two months following the crisis caused by the coronavirus pandemic.
"We will have a V-shape development - a decline followed by rapid recovery - in two months at the most," finance minister Florin Citu told local broadcaster Digi24. Citu added that Romania's economy may slide into recession this year but there is no reason to be too pessimistic.
Citu stressed that for the time being Romania has not tapped into the finance ministry's buffer funds to pay current expenses. In his words, Romania is not considering a loan from the International Monetary Fund (IMF) or from another international lender at this moment.
Romania's government has decided to raise the ceiling for credit guarantees for small and medium-sized enterprises (SMEs) affected by the coronavirus crisis by 5 billion lei ($1.13 million/1.03 million euro) and to cover 75% of the salary of employees sent into technical unemployment by affected companies.
The government plans to allocate almost 2% of GDP to support sectors affected by the coronavirus epidemic.