Romania to Cut Wages and Pensions to Appease IMF

Romania is to cut wages and pensions in the public sector later this year to comply with an IMF-led rescue deal.

Romanian President Traian Basescu said the "programme to cut public expenses was inevitable".

Public sector wages will be cut by 25% and all salaries, including the minimum one, will be affected. Jobless benefits and pensions will be slashed by 15%.

Romania is the recipient of a 20bn-euro aid package from the IMF, the EU and the World Bank.'

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