Q:
A:
Government, IMF agree on first revision of precautionary arrangement
Belgrade,
16 November 2011
State Secretary of the Ministry of Finance Dusan Nikezic said today that the Serbian government and the International Monetary Fund (IMF) reached an agreement on the first revision of the precautionary arrangement which stipulates that the budget deficit target in 2012 year be 4.25% of the gross domestic product (GDP).
Mark Allen and Dusan Nikezic
Author:
Fonet
Nikezic said at a press conference held after the completion of the first quarterly review of results in the implementation of the precautionary arrangement which Serbia made with this financial institution that the deficit target is below the legal level, which represents the first significant measure of savings.
He pointed out that it has been confirmed that in 2011 Serbia will achieve the planned growth rate of 2%, and pointed out that in 2012 the growth will slow down to 1.5% due to the crisis in Europe.
The State Secretary said that the Serbian government and the National Bank of Serbia lead a responsible economic policy that will enable the maintenance of macroeconomic stability.
Nikezic said that next year the agreed increase in pensions and salaries in the public sector will be applied - in April and October, and that investment in infrastructure and providing incentives for the economy will be continued.
IMF regional representative for Central and Eastern Europe Mark Allen expressed his satisfaction with the agreement reached and expressed hope that the Serbian government will be able to accomplish the estimated budget deficit.
Allen said that the level of public debt should remain below 45% of GDP and pointed out that the Serbian government will take measures to reduce the debt. He noted that inflation in Serbia is dropping and the financial system is well capitalised.
The IMF official voiced hope that the National Bank of Serbia will manage to secure stability of the financial system.
He pointed out that it has been confirmed that in 2011 Serbia will achieve the planned growth rate of 2%, and pointed out that in 2012 the growth will slow down to 1.5% due to the crisis in Europe.
The State Secretary said that the Serbian government and the National Bank of Serbia lead a responsible economic policy that will enable the maintenance of macroeconomic stability.
Nikezic said that next year the agreed increase in pensions and salaries in the public sector will be applied - in April and October, and that investment in infrastructure and providing incentives for the economy will be continued.
IMF regional representative for Central and Eastern Europe Mark Allen expressed his satisfaction with the agreement reached and expressed hope that the Serbian government will be able to accomplish the estimated budget deficit.
Allen said that the level of public debt should remain below 45% of GDP and pointed out that the Serbian government will take measures to reduce the debt. He noted that inflation in Serbia is dropping and the financial system is well capitalised.
The IMF official voiced hope that the National Bank of Serbia will manage to secure stability of the financial system.
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