"Economic crisis not over yet"

President of the Serbian Chamber of Commerce (PKS) Miloš Bugarin told daily Večernje Novosti that the global economic crisis is not over yet.

Izvor: Tanjug

Friday, 20.08.2010.

10:59

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President of the Serbian Chamber of Commerce (PKS) Milos Bugarin told daily Vecernje Novosti that the global economic crisis is not over yet. This makes claims that Serbia has come out of the recession irrational, and added that salaries and pensions should not be unfrozen and value added tax should increase by 1.5 percent. "Economic crisis not over yet" "Very difficult negotiations with the International Monetary Fund await Serbia, because the mission will insist on what was previously agreed upon. The talks will focus on the new fiscal responsibility law, which should clearly define how much the state can indebt itself. The bill is already prepared and it will be sent to the parliament for adoption after the fifth revision of the Stand-By Arrangement. We hope everything goes well," Bugarin said. He believes that it would be wise to wait several more months to unfreeze salaries, and to redirect possible money surplus for boosting export production. "Our standard of living keeps falling. We have the lowest salaries in the region, unemployment is on constant rise, the dinar weakened by 8.2 percent in first six months of 2010 even though EUR 1.7bn were spent to stabilize the foreign exchange rate. A new wave of price increase is expected, which could generate inflationary shocks," he added. Bugarin noted that on the one hand, we have more than 200 Croatian companies doing business in Serbia with investments of over EUR 500 million, and on the other, our firms are not allowed to place even a small popcorn machine at Zagreb's central square. "Unlike Croatian companies which have the support of their country and are welcome here, our companies are not welcome in Croatia and do not have the help of Serbia," Bugarin concluded.

"Economic crisis not over yet"

"Very difficult negotiations with the International Monetary Fund await Serbia, because the mission will insist on what was previously agreed upon. The talks will focus on the new fiscal responsibility law, which should clearly define how much the state can indebt itself. The bill is already prepared and it will be sent to the parliament for adoption after the fifth revision of the Stand-By Arrangement. We hope everything goes well," Bugarin said.

He believes that it would be wise to wait several more months to unfreeze salaries, and to redirect possible money surplus for boosting export production.

"Our standard of living keeps falling. We have the lowest salaries in the region, unemployment is on constant rise, the dinar weakened by 8.2 percent in first six months of 2010 even though EUR 1.7bn were spent to stabilize the foreign exchange rate. A new wave of price increase is expected, which could generate inflationary shocks," he added.

Bugarin noted that on the one hand, we have more than 200 Croatian companies doing business in Serbia with investments of over EUR 500 million, and on the other, our firms are not allowed to place even a small popcorn machine at Zagreb's central square.

"Unlike Croatian companies which have the support of their country and are welcome here, our companies are not welcome in Croatia and do not have the help of Serbia," Bugarin concluded.

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