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The Government of the Republic of Serbia

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Serbian government, IMF close to agreement

Belgrade, 12 November 2008

Serbian Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic today stated that the government is close to reaching an agreement with the International Monetary Fund (IMF), adding that the projected increase in salaries and pensions will have to be restricted in 2009.

Author: Tanjug

In a statement to the press, at the opening of the Careers Fair Karijera 08, Dinkic said that it is of importance that savings are evenly distributed among all categories and pointed out that the government allocates the greatest amount of money to salaries and pensions.

He said that Serbia and the IMF agreed that the budget deficit in 2009 will be 1.5% of GDP at state level, therefore Serbia can now negotiate with the IMF regarding how to set up a budget to support the deficit.

The Deputy Prime Minister said that the Governor of the National Bank of Serbia and the Minister of Finance have a key role regarding any agreement with the IMF.

Dinkic said that he has not yet received a reply to the official letter Dinkic and Prime Minister Cvetkovic sent to Gasprom, aimed at reaching full agreement on the Serbian oil industry NIS, the gas storage facility in Banatski Dvor and the gas pipeline.

According to him, there have not been any negotiations with Russia in this respect during the previous two weeks.

Dinkic expressed expectation that Russia will be willing to negotiate with Serbia on the agreement, adding that he will not give statements before negotiations start.