Q:
A:
Payment of debt to pensioners to begin in December this year
Belgrade,
10 November 2005
The Serbian Ministry of Finance has stated that it has reached an agreement with the International Monetary Fund (IMF) on paying the inherited debt to pensioners equalling one and a half pensions, and instead of the payment beginning in 2006, it will start in December 2005, due to this year’s significantly larger than planned budgetary surplus.
The ministry says that as early as next month, all pensioners insured by the Pension and Disability Insurance (PIO) fund for employees will receive, along with the regular November pension, the first part of the old debt in the amount corresponding to one-fourth of their pension.
The sum total that will be disbursed to approximately 1,240,000 pensioners in Serbia is 4 billion dinars. The second part of the old debt to pensioners in the same amount (4 billion dinars) is planned to be paid in July 2006.
According to the ministry, pensioners will be paid all parts of the old debt in cash instead of bonds and the payment of the debt will continue during 2007, with the process reaching completion in 2008.
The Ministry of Finance has expressed its satisfaction that after lengthy negotiations with the IMF, a solution has been reached according to which the payment of the inherited debt to pensioners no longer needs to be postponed.
From this month onwards, pensioners, for the first time in ten years, have begun receiving pensions in the current month for the previous one, and with the certainty that they can count on the state to pay them the totality of the old debt.
The ministry recalled that in the previous two months pensions have been increased 10.6 percent, in September 6.8 percent, and in November 3.6 percent.
The sum total that will be disbursed to approximately 1,240,000 pensioners in Serbia is 4 billion dinars. The second part of the old debt to pensioners in the same amount (4 billion dinars) is planned to be paid in July 2006.
According to the ministry, pensioners will be paid all parts of the old debt in cash instead of bonds and the payment of the debt will continue during 2007, with the process reaching completion in 2008.
The Ministry of Finance has expressed its satisfaction that after lengthy negotiations with the IMF, a solution has been reached according to which the payment of the inherited debt to pensioners no longer needs to be postponed.
From this month onwards, pensioners, for the first time in ten years, have begun receiving pensions in the current month for the previous one, and with the certainty that they can count on the state to pay them the totality of the old debt.
The ministry recalled that in the previous two months pensions have been increased 10.6 percent, in September 6.8 percent, and in November 3.6 percent.
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