BUCHAREST, Romania – Romania’s Parliament on Thursday passed this year’s budget, which will help the country get an International Monetary Fund bailout loan suspended last year due to political instability.
After four days of debate, lawmakers approved the budget by a vote of 198-132. Romania’s representative to the IMF, Mihai Tanasescu, said the budget would make it possible for the country get the deficit to 5.9 percent or less, as required by the international fund.
Earlier Thursday, Finance Minister Sebastian Vladescu said 100,000 public sector jobs would be cut as the country met the IMF requirements.
Former Finance Minister Varujan Vosganian criticized the new budget, saying small and medium-sized businesses would be harmed by a 16 percent tax on profits.
But Prime Minister Emil Boc said the budget would help Romania recover from recession. After years of growth, Romania’s economy shrank 8 percent last year. The country was forced to seek help, and the IMF, the European Union and the World Bank put together a euro20 billion package.
The loan was frozen in October after the government was lost a no-confidence vote in Parliament, leading instability. However, President Traian Basescu was re-elected in December.
Copyright 2009 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
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Romania passes budget; IMF loan now possible
BUCHAREST, Romania – Romania’s Parliament on Thursday passed this year’s budget, which will help the country get an International Monetary Fund bailout loan suspended last year due to political instability.
After four days of debate, lawmakers approved the budget by a vote of 198-132. Romania’s representative to the IMF, Mihai Tanasescu, said the budget would make it possible for the country get the deficit to 5.9 percent or less, as required by the international fund.
Earlier Thursday, Finance Minister Sebastian Vladescu said 100,000 public sector jobs would be cut as the country met the IMF requirements.
Former Finance Minister Varujan Vosganian criticized the new budget, saying small and medium-sized businesses would be harmed by a 16 percent tax on profits.
But Prime Minister Emil Boc said the budget would help Romania recover from recession. After years of growth, Romania’s economy shrank 8 percent last year. The country was forced to seek help, and the IMF, the European Union and the World Bank put together a euro20 billion package.
The loan was frozen in October after the government was lost a no-confidence vote in Parliament, leading instability. However, President Traian Basescu was re-elected in December.
Copyright 2009 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
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Read the article on Forbes
