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Funding secured for financing 2010 budget deficit
Belgrade,
17 December 2009
Serbian Prime Minister Mirko Cvetkovic stated that there will be no problems financing the budget deficit in 2010 because the necessary funds have already been secured.
In an interview with the Ekonomist, Cvetkovic said that negotiations with Russia about a $200 million loan for financing the budget deficit have been concluded.
He explained that the interest rate is approximately 3.6%, adding that this loan is being offered under the best possible terms and conditions.
The Prime Minister said that the loan agreement must be ratified by the Serbian and Russian parliaments before the funds can be drawn.
He said that Serbia received a €100 million donation from the EU to cover the deficit, of which sum half should be used before the end of 2009. We will receive another €200 million from the EU in the form of macro financial assistance and when we add to this the loans from the World Bank, covering the deficit will be no problem, the Prime Minister explained.
Cvetkovic reiterated that the priority next year will be to increase economic activity and thus create conditions for the deficit to be reduced in the upcoming years, adding that the point of all these reforms is to eventually achieve a balanced budget.
He explained that the interest rate is approximately 3.6%, adding that this loan is being offered under the best possible terms and conditions.
The Prime Minister said that the loan agreement must be ratified by the Serbian and Russian parliaments before the funds can be drawn.
He said that Serbia received a €100 million donation from the EU to cover the deficit, of which sum half should be used before the end of 2009. We will receive another €200 million from the EU in the form of macro financial assistance and when we add to this the loans from the World Bank, covering the deficit will be no problem, the Prime Minister explained.
Cvetkovic reiterated that the priority next year will be to increase economic activity and thus create conditions for the deficit to be reduced in the upcoming years, adding that the point of all these reforms is to eventually achieve a balanced budget.
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