Q:
A:
Government to discuss 2010 budget
Belgrade,
27 November 2009
Serbian Minister of Finance Diana Dragutinovic said today that the Serbian government has signed a $200 million loan agreement with the International Bank of Reconstruction and Development (IBRD), which is part of the World Bank. The funds will be used to support the budget.
Dragutinovic said at a press conference that the World Bank approved a $500 million loan to Serbia on November 17, of which $200 million will be provided this year. She said that the Serbian Parliament is expected to ratify the bill concerning the loan by the end of this year.
She explained that there are two loan agreements, one of them concerns funds for supporting the private and financial sector and the other is a programme loan for supporting public financing.
She said that the loan has been issued on an annual interest rate of 1% and is to be repaid over a period of 20 years.
Head of the World Bank Office in Serbia Simon Gray said that the loans for assisting the Serbian budget have been approved in order to help the public sector reform process and to create better conditions for the development of the private sector.
Dragutinovic confirmed that a Finance Ministry delegation is continuing talks with Russia concerning a $1billion loan.
She said that the government will discuss the 2010 draft budget on November 30 or on December 1, at the latest.
She said that the delay in adopting the budget was caused by the arrival of the IMF delegation in October.
She explained that the budget should have been drafted before the arrival of the IMF delegation but this was not done in order for the state to have proper scope for negotiation.
We could not have predicted the outcome of the negotiations and there would have been no point in preparing the budget only to have to make changes later, the Minister said.
She said that the other reason for the delay is that there will be many new articles in it, providing far greater transparency than before.
She said that transparency is obligatory under the Budget System Law and it helped ensure the support of the World Bank, adding that the draft budget was submitted to all ministries last evening.
She explained that there are two loan agreements, one of them concerns funds for supporting the private and financial sector and the other is a programme loan for supporting public financing.
She said that the loan has been issued on an annual interest rate of 1% and is to be repaid over a period of 20 years.
Head of the World Bank Office in Serbia Simon Gray said that the loans for assisting the Serbian budget have been approved in order to help the public sector reform process and to create better conditions for the development of the private sector.
Dragutinovic confirmed that a Finance Ministry delegation is continuing talks with Russia concerning a $1billion loan.
She said that the government will discuss the 2010 draft budget on November 30 or on December 1, at the latest.
She said that the delay in adopting the budget was caused by the arrival of the IMF delegation in October.
She explained that the budget should have been drafted before the arrival of the IMF delegation but this was not done in order for the state to have proper scope for negotiation.
We could not have predicted the outcome of the negotiations and there would have been no point in preparing the budget only to have to make changes later, the Minister said.
She said that the other reason for the delay is that there will be many new articles in it, providing far greater transparency than before.
She said that transparency is obligatory under the Budget System Law and it helped ensure the support of the World Bank, adding that the draft budget was submitted to all ministries last evening.
-
Belgrade, 11 August 2025Support for agricultural projects worth RSD 750 million
-
Belgrade, 21 July 2025Construction of oil pipeline with Hungary to begin early next year
-
Belgrade/Athens, 17 July 2025Serbia continues to align with EU in field of energy
-
Kostolac, 14 July 2025First solar power plant Petka in Kostolac put into trial operation
-
Belgrade, 11 July 2025Potential for improving cooperation with Belarus in many areas
-
Požega, 5 July 2025Section of Pakovraće - Požega highway officially opened
-
Belgrade, 2 July 2025Technical specifications defined for Serbia-Hungary oil pipeline
-
Belgrade, 30 June 2025IMF confirms Serbia successfully implementing all agreed reforms
-
Belgrade, 27 June 2025Double Taxation Avoidance Agreement with Germany signed
-
Kostolac, 25 June 2025Construction of Kostolac wind farm nearing completion