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A:
Krkobabic, IMF delegation discuss economic situation in Serbia
Belgrade,
3 November 2008
Serbian Deputy Prime Minister Jovan Krkobabic met today with the International Monetary Fund (IMF) delegation headed by Albert Jaeger which presented its view on the possible influences of the global financial crisis upon Serbia.
Author:
Tanjug
The Deputy Prime Minister’s cabinet stated that the IMF believes Serbia will have considerable problems regarding export since the consequences of the crisis are already visible in the metal industry, adding that the IMF has already reduced the projected GDP to 3.5% and expects inflation of almost 8% in 2009.
The IMF also thinks that the 2009 budget projection is somewhat optimistic and that the deficit will be approximately RSD 50 billion.
According to the IMF, if the planned pension increase to 70% of the average salary occurs, the Serbian government will have to reduce capital investments.
Jaeger showed special interest in the way in which funds for pension increase could be provided without disturbing macroeconomic stability in the process.
Krkobabic explained there is a whole series of mechanisms to regulate that, for instance cutting down unproductive workforces in the public sector, good organisation of fiscal revenues, clamping down on the grey economy, suppressing corruption and as the priority item on the list collecting regular contributions to the Pension and Disability Fund and existing debts.
He noted that balancing funds for 2009 and 2010 will incur a slight increase but will not negatively affect macroeconomic stability or cause significant fluctuations in the 2009 and 2010 budgets.
Krkobabic also said he is aware of the current situation and voiced a readiness to solve the issue through compromise, noting that pensions will eventually be synchronised with salaries.
The IMF also thinks that the 2009 budget projection is somewhat optimistic and that the deficit will be approximately RSD 50 billion.
According to the IMF, if the planned pension increase to 70% of the average salary occurs, the Serbian government will have to reduce capital investments.
Jaeger showed special interest in the way in which funds for pension increase could be provided without disturbing macroeconomic stability in the process.
Krkobabic explained there is a whole series of mechanisms to regulate that, for instance cutting down unproductive workforces in the public sector, good organisation of fiscal revenues, clamping down on the grey economy, suppressing corruption and as the priority item on the list collecting regular contributions to the Pension and Disability Fund and existing debts.
He noted that balancing funds for 2009 and 2010 will incur a slight increase but will not negatively affect macroeconomic stability or cause significant fluctuations in the 2009 and 2010 budgets.
Krkobabic also said he is aware of the current situation and voiced a readiness to solve the issue through compromise, noting that pensions will eventually be synchronised with salaries.
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