Basescu: "The IMF Money Could Be Used For Pensions And Salaries"

C.D.

• While visiting Lebanon, the President announced that the Government could exceptionally use part of the 6 billion EUR from the foreign loan to pay pensions and salaries

• Premier Boc hopes that the foreign loan will only be used to finance the deficit. Salary raises should be financed with the money left from restructuring governmental agencies

While visiting Beirut, President Traian Basescu said that some of the money borrowed from the International Monetary Fund could be exceptionally used to balance small pensions and salaries if the economic and financial crisis worsened. During a speech delivered to the Beirut Chamber of Commerce, Basescu briefed Lebanese businesspeople with investment opportunities and economic conditions in Romania. He also referred to the loan agreement to be soon signed with the IMF. "We will borrow 20 billion from the European Commission and the IMF. 13 billion EUR will go to the National Bank to consolidate the national reserve and stabilize the currency against the other currencies. 6 billion is for the Government, especially for investments. Only under exceptional circumstances can the 6 billion be used for other types of expenses than investments. If it is necessary, we will use this money for small salaries and pensions if the crisis worsens," he said. It appears that the President"s statements surprised Premier Emil Boc.

• Boc: "We hope we won"t have to pay small pensions and salaries from the EC loan"

After President Traian Basescu unveiled the possibility that some of the money borrowed from the EU and the IMF could be used to sustain pension and salary payments under exceptional conditions, Premier Emil Boc made the following statement: "The Romanian authorities are hoping they will not have to use the money from the EC loan to pay small salaries and pensions." Boc added that the money would be used exclusively to finance the deficit, if circumstances allowed.

"What the President is telling us is that we are hoping we will not be forced to use this money to sustain the payment of small pensions and salaries because our objective is to use to money - I repeat, the 6 billion EUR from the EC - to finance the deficit," Boc told a public radio channel. "If things are going as planned, the money will be used for investments instead of small pensions and salaries," he added. The Premier added that the Government intended to increase small and average salaries from the savings to be made by reorganizing governmental agencies and by forcing pensioners who still want to be employed by the State to choose between pension and salary. An extra "solidarity contribution" could also be levied.

• IMF to send official loan letter in a few days

The Government has received confirmation that the official letter from the IMF regarding the loan agreement with Romania will arrive between 14 and 20 April. The IMF Board and the European Commission will discuss the validation of the foreign loan between 4 and 6 May, Prime Minister Emil Boc told NewsIn yesterday.

The Premier explained: "From our point of view, the Government has fulfilled all obligations derived from the preliminary negotiations with the European Commission and the IMF. On Wednesday, we received confirmation that the official letter from the IMF would arrive on 14-20 April and that the IMF Board and the EC will discuss the validation of the loan on 4-6 May. The first tranche of the money earmarked for the National Bank will be disbursed also in May.

Boc repeated that four conditions had been imposed in order to have a functional loan agreement with the IMF and the EC and all four of them concerned the adoption of specific bills. The first of them - the budget rectification - has been completed already.