PM calls meeting on impact of economic crisis on Serbia

Serbia’s PM Mirko Cvetkovic today held a meeting on current disturbances in the world market that could cause a new wave of crisis in Europe and Serbia. All economic developments in the region and Europe must be followed with attention so that adequate measures can be taken to respond to possible spillover of the crisis in Serbia, Mirko Cvetkovic said Wednesday. PM calls meeting on impact of economic crisis on Serbia Cvetkovic convened the meeting after the latest disturbances on the world market that could cause a new wave of crisis in Europe and Serbia so that the country could be ready for a potential new crisis. The meeting was attended by Deputy Prime Minister for European Integration Bozidar Djelic, Minister of Economy and Regional Development Nebojsa Ciric, State Secretary of Finance Dusan Nikezic, National Bank of Serbia (NBS) Governor Dejan Soskic, President of NBS Council of Governors Milojko Arsic, NBS Vice Governor Bojan Markovic, President of the Fiscal Council Pavle Petrovic, as well as members of the Fiscal Council Vladimir Vuckovic and Nikola Altipamarkov. It was concluded that the adopted fiscal policy rules must be respected in order to maintain stability in the foreign exchange market and prevent potential risks that could affect the larger oscillations of the dinar. In that sense, fiscal responsibility, savings and cuts in public spending must be respected at the republic, provincial and local levels. The new precautionary arrangement that Serbia will sign with the International Monetary Fund (IMF) is essential, it was concluded. This arrangement would be a guarantor of macroeconomic stability, but also an indication that the Serbian government takes credible economic policy, which is a positive signal to all potential investors in Serbia. In such conditions, with strict adherence to fiscal rules, it is also necessary to encourage export-oriented economy and competitive industries, such as food processing and agriculture. The meeting also discussed the issue of liquidity in the financial markets, as well as the possibility to increase investments with appropriate interest rates. The Serbian government and NBS will hold meetings with businessmen and commercial banks to review their proposals and evaluate the current situation, a statement issued after the meeting says. In the meantime the Serbian currency, RSD, continued to lose in value against the euro (EUR). The dinar today dropped against euro by 0.9 percent and the official middle rate will be RSD 104.1 for one euro, the NBS has announced. In other words, one euro will cost 90 paras more than yesterday when the middle exchange rate was RSD 103.2. The central bank sold EUR 50mn in the interbank foreign exchange market this year and bought EUR 45mn in order to mitigate daily exchange rate oscillations. (Beta)

PM calls meeting on impact of economic crisis on Serbia

Cvetković convened the meeting after the latest disturbances on the world market that could cause a new wave of crisis in Europe and Serbia so that the country could be ready for a potential new crisis.

The meeting was attended by Deputy Prime Minister for European Integration Božidar Đelić, Minister of Economy and Regional Development Nebojša Ćirić, State Secretary of Finance Dušan Nikezić, National Bank of Serbia (NBS) Governor Dejan Šoškić, President of NBS Council of Governors Milojko Arsić, NBS Vice Governor Bojan Marković, President of the Fiscal Council Pavle Petrović, as well as members of the Fiscal Council Vladimir Vučković and Nikola Altipamarkov.

It was concluded that the adopted fiscal policy rules must be respected in order to maintain stability in the foreign exchange market and prevent potential risks that could affect the larger oscillations of the dinar.

In that sense, fiscal responsibility, savings and cuts in public spending must be respected at the republic, provincial and local levels.

The new precautionary arrangement that Serbia will sign with the International Monetary Fund (IMF) is essential, it was concluded.

This arrangement would be a guarantor of macroeconomic stability, but also an indication that the Serbian government takes credible economic policy, which is a positive signal to all potential investors in Serbia.

In such conditions, with strict adherence to fiscal rules, it is also necessary to encourage export-oriented economy and competitive industries, such as food processing and agriculture.

The meeting also discussed the issue of liquidity in the financial markets, as well as the possibility to increase investments with appropriate interest rates.

The Serbian government and NBS will hold meetings with businessmen and commercial banks to review their proposals and evaluate the current situation, a statement issued after the meeting says.

In the meantime the Serbian currency, RSD, continued to lose in value against the euro (EUR).

The dinar today dropped against euro by 0.9 percent and the official middle rate will be RSD 104.1 for one euro, the NBS has announced. In other words, one euro will cost 90 paras more than yesterday when the middle exchange rate was RSD 103.2.

The central bank sold EUR 50mn in the interbank foreign exchange market this year and bought EUR 45mn in order to mitigate daily exchange rate oscillations.