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March 5, 2021

PSD proposes that salary cuts be offset by state bonds

The Social-Democrat Party (PSD) is going to put to Parliament a legislative proposal whereby the state would issue three year maturity bonds aimed at compensating for the salary cuts during July 1 – Dec 31 in the public sector. Social-Democrat Deputies Mugurel Surupaceanu and Nicolae Banicioiu presented a press conference Monday with a draft bill to be tabled in Parliament, under which state employees, who took 25 per cent pay cuts July 1 – Dec. 31, will be handed as compensations three year maturity state bonds at an annual interest rate matching the average interest rate banks charge on RON loans. One such bond certificate is worth RON 100, and the issue will amount to an overall RON 5,087,600,000 saved thanks to the 25 per cent salary cut to 1,352,600 state employees.

According to PSD calculations, the overall amount government would return to state employees should come up to nearly RON 6 bln, including the three year interest. The bonds will be calculated strictly for the amounts cut during July 1 – Dec. 31, 2010 and their issuing will be a two-step process, with half of the cut-equivalent going to be issued in 2012, and the other half in 2013 respectively.

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