At today’s meeting, Krkobabic and a World Bank delegation, headed by World Bank Director in Serbia Simon Gray, discussed the Pensions Administration Reform Investment Project (PARIP) in Serbia which has been implemented since 2005.
Gray was particularly interested how the pension funds can be raised without disturbing macroeconomic stability, and expressed concern that the increase of pensions to 70% of average salary is not viable.
Krkobabic also pointed out that the Serbian government is trying to improve overall social and economic situation.
He explained that non-regular pension increase of 10% did not disturb the 2008 budget and added that pensions will be increased to 70% of average salary by the end of 2009 and macroeconomic stability will not be jeopardised.
Gray stressed that great progress in the past few months is obvious.