"No need to change Serbia's pension system"

The visiting IMF mission today in Belgrade held talks with Serbian Deputy Prime Minister Jovan Krkobabic. The IMF and representatives of the Serbian government are discussing a possible precautionary agreement. "No need to change Serbia's pension system" According to announcements in Belgrade, the meeting today concluded that "at the moment there is no need to amend Serbia's pension system and that the next government and convocation of the parliament will have to deal with its further improvement and modernization". Any change in the years of service and life necessary for retirement is not an issue that can be resolved within a number of years, but its adjustment could take decades, reads the released issued after the meeting. Both sides agreed that at this point Serbia should explore possible models for improving the Pension and Disability Insurance Fund (PIO) system and start tackling the issue at the level of expert groups, so that when the time comes, the country has a good basis for proposing further improvements and adjustments in line with the country's socio-economic conditions. The talks focused on the country's social policy with special emphasis on improvements that could be made as regards PIO, the deputy prime minister's cabinet released. The participants of the meeting underlined that the pension system and changes made to it have to be based on greater employment prospects, so as to redress the balance between those who contribute to the pension fund and its beneficiaries, as well as a consistent and effective fiscal policy, on which the IMF insists this time. The requirements have to be tightened so as to prevent possible misuse of the PIO system, it was concluded at the meeting between Krkobabic and the IMF. The official talks between representatives of the Serbian government and the IMF kicked off on Monday with a plenary session at the National Bank of Serbia (NBS). The Monday talks between Serbian Prime Minister Mirko Cvetkovic and representatives of the IMF concluded that it is necessary to stick to fiscal rules, implement spending cuts at all levels of government, and continue reforms aimed at improvement of investment climate in Serbia in the upcoming period. The PM stated that a precautionary agreement with the IMF is very important since it enables Serbia to make drawings should the need arise, and in the manner assures all foreign investors that the country is implementing a credible economic policy. The meeting between Cvetkovic and the IMF mission, headed by Albert Jaeger, discussed the macroeconomic trends by the end of the year, and the PM announced that an adjustment and increase in salaries and pensions will take place in October as envisaged by the law. The IMF mission will continue the talks with representatives of the Ministry of Finance on the budget revision planned for September, and determine the budget framework for 2012, the Serbian government's press office stated. The IMF mission will stay in Belgrade from August 18-30. The precautionary arrangement provides the right to make drawings should the need arise. The preliminary talks on the arrangement took place in May this year. The arrangement would last 18 months and Serbia would have access to 200 percent of its IMF quota, which is about one billion euros. (Beta)

"No need to change Serbia's pension system"

According to announcements in Belgrade, the meeting today concluded that "at the moment there is no need to amend Serbia's pension system and that the next government and convocation of the parliament will have to deal with its further improvement and modernization".

Any change in the years of service and life necessary for retirement is not an issue that can be resolved within a number of years, but its adjustment could take decades, reads the released issued after the meeting.

Both sides agreed that at this point Serbia should explore possible models for improving the Pension and Disability Insurance Fund (PIO) system and start tackling the issue at the level of expert groups, so that when the time comes, the country has a good basis for proposing further improvements and adjustments in line with the country's socio-economic conditions.

The talks focused on the country's social policy with special emphasis on improvements that could be made as regards PIO, the deputy prime minister's cabinet released.

The participants of the meeting underlined that the pension system and changes made to it have to be based on greater employment prospects, so as to redress the balance between those who contribute to the pension fund and its beneficiaries, as well as a consistent and effective fiscal policy, on which the IMF insists this time.

The requirements have to be tightened so as to prevent possible misuse of the PIO system, it was concluded at the meeting between Krkobabić and the IMF.

The official talks between representatives of the Serbian government and the IMF kicked off on Monday with a plenary session at the National Bank of Serbia (NBS).

The Monday talks between Serbian Prime Minister Mirko Cvetković and representatives of the IMF concluded that it is necessary to stick to fiscal rules, implement spending cuts at all levels of government, and continue reforms aimed at improvement of investment climate in Serbia in the upcoming period.

The PM stated that a precautionary agreement with the IMF is very important since it enables Serbia to make drawings should the need arise, and in the manner assures all foreign investors that the country is implementing a credible economic policy.

The meeting between Cvetković and the IMF mission, headed by Albert Jaeger, discussed the macroeconomic trends by the end of the year, and the PM announced that an adjustment and increase in salaries and pensions will take place in October as envisaged by the law.

The IMF mission will continue the talks with representatives of the Ministry of Finance on the budget revision planned for September, and determine the budget framework for 2012, the Serbian government's press office stated.

The IMF mission will stay in Belgrade from August 18-30.

The precautionary arrangement provides the right to make drawings should the need arise. The preliminary talks on the arrangement took place in May this year. The arrangement would last 18 months and Serbia would have access to 200 percent of its IMF quota, which is about one billion euros.