Subsidized cash loans to be discontinued
Serbian Minister of Economy and Regional Development Mlađan Dinkić announced that the subsidized cash loans for citizens will be abolished as of 2011.
Monday, 18.10.2010.
19:50
Serbian Minister of Economy and Regional Development Mladjan Dinkic announced that the subsidized cash loans for citizens will be abolished as of 2011. The loans, introduced to boost domestic demand, are now nearing their end of life, while the loans for investment liquidity will remain. Subsidized cash loans to be discontinued The subsidized cash loans were introduced because the public sector salaries and pensions were frozen, and since their unfreezing is planned on January 1, there seems to be no need for further granting of the loans, Dinkic told news reporters in Belgrade. He said that one half of the two percent gross domestic product (GDP) growth planned for this year would be realized owing to the subsidized loans for economy, which was also confirmed by the International Monetary Fund (IMF). “The very moment the economic growth reaches three percent in two successive quarters, we will stop granting the subsidized loans,” Dinkic said, stressing that the loans for economy have helped maintain the employment level, open new jobs, and increase production and exports. Dinkic said that exporters should be given better support next year, assessing that the proposal of businessmen that a guarantee fund for the support of Serbian exporters should be established was a good idea. The minister pointed out that the problem of guarantee issuance for the exports of goods the value of which exceeds 2 mln EUR (the Export Credit and Insurance Agency of the Republic of Serbia (AOFI) finances up to 2 mln) had not been adequately resolved, and stressed that the state could establish the fund together with banks. Answering the reporters' question on the possibility of founding a Serbian development bank, Dinkic said that such a bank would require at least 1 bln EUR to be established, which Serbia currently cannot afford, and recalled that the country's Development Fund could use the guarantee system to direct the existing potential toward economy.
Subsidized cash loans to be discontinued
The subsidized cash loans were introduced because the public sector salaries and pensions were frozen, and since their unfreezing is planned on January 1, there seems to be no need for further granting of the loans, Dinkić told news reporters in Belgrade.He said that one half of the two percent gross domestic product (GDP) growth planned for this year would be realized owing to the subsidized loans for economy, which was also confirmed by the International Monetary Fund (IMF).
“The very moment the economic growth reaches three percent in two successive quarters, we will stop granting the subsidized loans,” Dinkić said, stressing that the loans for economy have helped maintain the employment level, open new jobs, and increase production and exports.
Dinkić said that exporters should be given better support next year, assessing that the proposal of businessmen that a guarantee fund for the support of Serbian exporters should be established was a good idea.
The minister pointed out that the problem of guarantee issuance for the exports of goods the value of which exceeds 2 mln EUR (the Export Credit and Insurance Agency of the Republic of Serbia (AOFI) finances up to 2 mln) had not been adequately resolved, and stressed that the state could establish the fund together with banks.
Answering the reporters' question on the possibility of founding a Serbian development bank, Dinkić said that such a bank would require at least 1 bln EUR to be established, which Serbia currently cannot afford, and recalled that the country's Development Fund could use the guarantee system to direct the existing potential toward economy.
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