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A:
Serbia must reduce state expenses this year
Belgrade,
17 March 2009
Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic today stated that talks with the IMF will be successful and a financial arrangement reached next week.
In a statement to radio television B92, Dinkic specified that the IMF is offering Serbia €2 billion this year and €1 billion next year, which is more than enough to cover Serbia’s needs, adding that Serbia’s main task is to reduce state expenses this year.
He stressed it is necessary to reach agreement with foreign banks on refinancing the debt of the private sector, which currently stands at €15.5 billion and is twice larger that the state debt, announcing amendments to the Law on the bankruptcy procedure which will soon be sent to parliament.
The Minister said the government is trying to mitigate the impact of the global crisis as much as possible and is therefore preparing for all scenarios, adding that this year will be similar to the previous one, not dramatically worse, but also not as good as some previous years.
He voiced his expectation that budget revisions will be adopted in April, adding that salaries and pensions will be unchanged.
Dinkic noted that by revising the budget the government would decrease public sector expenditure by several hundred million Euros, adding that Serbia’s GDP growth in 2009 will be 0.1% instead of the planned 3.5%.
The Minister said that according to the new government measures nobody could be employed in the public sector without the government’s approval and nobody will be employed to replace people who have retired.
Dinkic reiterated that expenses of all 530,000 employees in public administration must be decreased.
He stressed it is necessary to reach agreement with foreign banks on refinancing the debt of the private sector, which currently stands at €15.5 billion and is twice larger that the state debt, announcing amendments to the Law on the bankruptcy procedure which will soon be sent to parliament.
The Minister said the government is trying to mitigate the impact of the global crisis as much as possible and is therefore preparing for all scenarios, adding that this year will be similar to the previous one, not dramatically worse, but also not as good as some previous years.
He voiced his expectation that budget revisions will be adopted in April, adding that salaries and pensions will be unchanged.
Dinkic noted that by revising the budget the government would decrease public sector expenditure by several hundred million Euros, adding that Serbia’s GDP growth in 2009 will be 0.1% instead of the planned 3.5%.
The Minister said that according to the new government measures nobody could be employed in the public sector without the government’s approval and nobody will be employed to replace people who have retired.
Dinkic reiterated that expenses of all 530,000 employees in public administration must be decreased.
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