Tolosa, IMF: New Gov’t must do its homework and then take action, not vice versa

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If the new government will maintain the wage growth in the public sector, the measure must be part of a comprehensive package of reform in this segment, Guillermo Tolosa, the International Monetary Fund’s resident representative said on Wednesday during the Romanian Banking Forum.

According to him, the budgetary sector reform package should include measures such as improving administrative capacity.

“Moreover, it must be clearly stated the funding source, whether it is a sustainable measure for the current budget framework and which will be measures that will support this increase. So, we expect the government to do its homework, firstly, and then to take action, and not vice versa,” IMF official pointed out.

According to him, the priority of the new Government must be to maintain the financial macro stability, achieved with efforts in recent years. IMF representative argues that Romania is in the best macroeconomic situation of the past seven years and would be a shame to lose this basis absolutely necessary for the future prosperity.

In turn, Steven van Groningen CEO Raiffeisen Bank Romania, believes that the salaries increase in the budgetary sector can be supported by reducing staff.

“But this is not the main problem in Romania, but the weak capacity of the administration,” he stressed.

 

 

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