Q:
A:
Contract with UAE on $1.1bn loans to be signed tomorrow
Kopaonik,
5 March 2014
Minister of Finance Lazar Krstic said today at the Kopaonik Business Forum that a contract will be signed tomorrow with the United Arab Emirates (UAE) on budget loan worth $1 billion and a loan for irrigation worth $100 million.
Author:
Tanjug
Krstic said that the budget loan will be granted with a repayment period of 10 years and an interest rate of 2% per year, and noted that it is necessary that the loan contract be ratified by the new parliament.
He said that the interest rate is lower when compared to the current conditions in the global financial market and is worth $290 million.
He added that a delegation of the Ministry of Finance will travel to the UAE tomorrow to sign the contract.
The Minister of Finance listed the objectives of economic policy, which include reducing the budget deficit by 2017 to 2% of GDP, responsible fiscal policy that would in a few years create space for relaxed monetary policy, which would stimulate economic development, and reducing the role of the state in the economy.
Krstic added that the parliamentary elections on 16 March will be followed by a revised budget for this year, and that fiscal consolidation will be made in the best way to stimulate the economy, with low social costs.
It is one of the topics to be discussed with the IMF at a technical level, said Krstic, noting that the new agreement with the IMF is important for Serbia in order to attract investors.
According to Krstic, the IMF is coming to the talks in the midst of the election campaign, thus showing respect for Serbia as a state.
Krstic said that a unified system of tax collection began to function normally on 3 March.
He recalled that the experimental system running of a unified tax collection began on 1 January.
Krstic also announced between RSD 1 billion and RSD 2 billion for banks that provided special interest rates on subsidised housing loans in 2011 and 2012.
He said that the interest rate is lower when compared to the current conditions in the global financial market and is worth $290 million.
He added that a delegation of the Ministry of Finance will travel to the UAE tomorrow to sign the contract.
The Minister of Finance listed the objectives of economic policy, which include reducing the budget deficit by 2017 to 2% of GDP, responsible fiscal policy that would in a few years create space for relaxed monetary policy, which would stimulate economic development, and reducing the role of the state in the economy.
Krstic added that the parliamentary elections on 16 March will be followed by a revised budget for this year, and that fiscal consolidation will be made in the best way to stimulate the economy, with low social costs.
It is one of the topics to be discussed with the IMF at a technical level, said Krstic, noting that the new agreement with the IMF is important for Serbia in order to attract investors.
According to Krstic, the IMF is coming to the talks in the midst of the election campaign, thus showing respect for Serbia as a state.
Krstic said that a unified system of tax collection began to function normally on 3 March.
He recalled that the experimental system running of a unified tax collection began on 1 January.
Krstic also announced between RSD 1 billion and RSD 2 billion for banks that provided special interest rates on subsidised housing loans in 2011 and 2012.
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