Public Sector Employees, Pensioners Might Get Less Money Until Romania Is Set On Track

"Romania can no longer guarantee it can meet the obligations included in the external loan agreement with the IMF by the end of the year," Stolojan said, adding the Fund's concern is whether Romania will be able to meet its obligations from now on.

Asked whether the IMF will give Romania the third loan disbursement, Stolojan said the Fund might ask for further guarantees.

In response to a question regarding the country's ability to pay wages and pensions without the third disbursement from the Fund, Stolojan said the current Government will have to mull over the problem and take drastic measures to cut expenses with wages and pensions, adding public sector employees and pensioners might receive reduced wages and pensions until the country is set back on track.

A mission of the International Monetary Fund met Thursday evening with Prime Minister Emil Boc to talk about the two-year standby arrangement for EUR12.95 billion and the country's economic progress. The IMF standby loan is part of a wider EUR19.95 billion aid package the country took from the EU, the World Bank and other foreign lenders to cope with the recession

Representatives of the European Commission and the World Bank were also present at the meeting.

The IMF's mission met Wednesday with central bank Governor Mugur Isarescu and held talks with the representatives of the Finance Ministry.

Recently, the IMF said that a mission would be in Romania October 28 through November 9 to review the country's economic progress, reconsidering earlier plans to delay the mission until a new government is formed.

Romania has so far received around EUR7 billion from the IMF.

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