Friday, August 14, 2009

Romanian government announces plans to cut 14,000 jobs amid deep recession

Associated Press

BUCHAREST, ROMANIA — The Romanian government says it plans to cut 14,000 jobs as it struggles with a deep recession and a shrinking economy.

The decision announced Wednesday will affect almost all the country's ministries, which have been heavily criticized for their high salaries and allegations of misspending.

Lawmakers must approve the government's plan, but the governing coalition has a large majority in Parliament.

The International Monetary Fund predicts the Romanian economy will shrink by 8 to 8.5 percent. It has said it will lend Romania $17.1 billion to cushion the effects of the sharp drop in capital inflows caused by the global financial crisis.

It said Monday the country would be allowed a larger budget deficit to cope with the deeper-than-expected downturn in the economy. It is now allowed 7.3 percent of gross domestic product, instead of the initially agreed 4.6 percent deficit.

No comments: