PM: Better economic situation in 2010

Prime Minister Mirko Cvetkovic said that the economic situation in Serbia will be better in 2010 than it was this year. He told daily Vecernje Novosti that the reasons for this include the improvement in Serbia’s credit rating, the visa liberalization, and the fact that the debate before the International Court of Justice regarding the legality of Kosovo’s unilaterally declared independence is “heading in the right direction.” PM: Better economic situation in 2010 Asked how the 2010 budget can encourage development when 60 percent of the funds go towards wages and pensions, Cvetkovic said that the combination of funds for infrastructure from the budget and those coming from foreign sources will be enough to encourage development. “We are giving the initial funds from the budget for the construction of infrastructure, and we took out credit from international institutions,” Cvetkovic said. He said that the financial constructs of Corridor 10 have been completed and that there needs to be concrete preparation done for building the roads and highways. Speaking of the credit of USD 200mn approve by Russia for Serbia, he said that this agreement has yet to be formalized. “The credit will be approved with interest of 3.6 percent. That is the lowest interest rate we have, if you don’t include the money coming from the World Bank and EU,” Cvetkovic said. The Prime Minister said that Serbia is “carefully” looking at the demands of Serbian Electric (EPS) for increases in electricity prices by 10 percent starting in January, adding that the first condition is that the government will make sure that citizens living in poverty will not have to adhere to the price increases. He said that the report of shortcomings and abuses given by the State Audit Institution shows that new regulatory procedures are needed in some state institutions. Cvetkovic said that the government will get to work immediately on these shortcomings. “The second problem, which I see as being very big and unacceptable, is the lack of public tenders for the needed products and services,” Cvetkovic said, adding that the auditing situation will be a lot better at the end of 2010. Mirko Cvetkovic (Tanjug archive)

PM: Better economic situation in 2010

Asked how the 2010 budget can encourage development when 60 percent of the funds go towards wages and pensions, Cvetković said that the combination of funds for infrastructure from the budget and those coming from foreign sources will be enough to encourage development.

“We are giving the initial funds from the budget for the construction of infrastructure, and we took out credit from international institutions,” Cvetković said.

He said that the financial constructs of Corridor 10 have been completed and that there needs to be concrete preparation done for building the roads and highways.

Speaking of the credit of USD 200mn approve by Russia for Serbia, he said that this agreement has yet to be formalized.

“The credit will be approved with interest of 3.6 percent. That is the lowest interest rate we have, if you don’t include the money coming from the World Bank and EU,” Cvetković said.

The Prime Minister said that Serbia is “carefully” looking at the demands of Serbian Electric (EPS) for increases in electricity prices by 10 percent starting in January, adding that the first condition is that the government will make sure that citizens living in poverty will not have to adhere to the price increases.

He said that the report of shortcomings and abuses given by the State Audit Institution shows that new regulatory procedures are needed in some state institutions.

Cvetković said that the government will get to work immediately on these shortcomings.

“The second problem, which I see as being very big and unacceptable, is the lack of public tenders for the needed products and services,” Cvetković said, adding that the auditing situation will be a lot better at the end of 2010.