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Image header Agence Europe
Europe Daily Bulletin No. 10774
ECONOMY - FINANCE - BUSINESS / (ae) romania

Three more months to apply adjustment programme

Brussels, 29/01/2013 (Agence Europe) -The Romanian government is asking for the structural adjustment programme for their loans of €5.4 billion to be extended by three months, said the European Commission and the International Monetary Fund in a joint press release on Tuesday 29 January. The extra time will enable the government to reduce government payment arrears and restructure public companies.

Romania's budget plans for 2013 include an increase in the minimum wage to 800 RON in July and increases in civil servant pay to pre-crisis levels; an 4% increase in retirement pensions; and reducing late payments in the health sector as required by EU Directive 2011/7.

The Romanian government has pledged to reform public companies to bring in private capital. This will involve selling off 15% of Transgaz, selling a majority share in CFR Marfa to a “strategic” investor and winding up Oltchim. A new strategy for deregulating electricity and gas prices will be introduced with protective measures for vulnerable consumers. (MB/transl.fl)

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