Central bank chief on IMF deal, public debt

The arrangement with the IMF has not been terminated but suspended, and until it has resumed, Serbia should reform its public sector and tax system. This is according to National Bank of Serbia (NBS) Governor Dejan Soskic, who also noted that Serbia "cannot allow its public debt, which has exceeded 45 percent of the GDP, to grow further" Central bank chief on IMF deal, public debt It is good that the arrangement with the IMF has not been terminated - it has only been suspended, so there is no reason for panic or destabilization, and we have the opportunity to continue everything where we stopped, Soskic said in an interview for Biznis magazine. The NBS governor stressed the public sector reform must be carried out even though it is politically unpopular and the number one topic for every government, the current as well as the future, and explained that the reform leads to lower public spending. "I really believe we should have made an effort to make a positive review of the arrangement happen, as it is the simplest way to maintain trust in Serbia. How the absence of a positive review will reflect on the risk premium - definitely not well," Soskic said and stressed it is especially important to show in the coming period that Serbia can conduct a credible fiscal policy even without IMF supervision. Asked how Serbia will finance its public debt this year, Soskic warned about the danger of a rise in the country's risk premium, which could occur due to the postponement of the IMF arrangement and specified this could be reflected in the terms and structure of financing the public debt. "The terms could be less favorable than they were in 2011," Soskic warned and noted that as a responsible country, Serbia must find alternatives in time. "Our public debt has exceeded 45 percent of the GDP. A large portion of our debt is in foreign currency. Therefore, the exchange rate affects the level of our public debt. If there is depreciation, it will be much easier for the debt to surpass the 45 percent threshold," said the NBS governor. Dejan Soskic (file) "Public debt 43.2 percent of GDP" The Serbian Finance Ministry announced on Monday that at the end of January the country's public debt amounted to EUR 14.47 billion, or 43.2 percent of gross domestic product (GDP). According to the Budget System Law, Serbia's public debt should not exceed 45 percent of GDP. At the end of January, Serbia's overall direct obligations equaled EUR 12.39 billion, including the internal debt (around EUR 5.21 billion), and external debt (EUR 7.18 billion). Indirect obligations totaled EUR 2.08 billion, the ministry published on its website. At the end of 2011, the country's public debt reached EUR 14.47 billion, or 45.1 percent of GDP. At the end of 2008, Serbia's public debt was USD 8.78 billion, or 29.2 percent of GDP. Tanjug

Central bank chief on IMF deal, public debt

It is good that the arrangement with the IMF has not been terminated - it has only been suspended, so there is no reason for panic or destabilization, and we have the opportunity to continue everything where we stopped, Šoškić said in an interview for Biznis magazine.

The NBS governor stressed the public sector reform must be carried out even though it is politically unpopular and the number one topic for every government, the current as well as the future, and explained that the reform leads to lower public spending.

"I really believe we should have made an effort to make a positive review of the arrangement happen, as it is the simplest way to maintain trust in Serbia. How the absence of a positive review will reflect on the risk premium - definitely not well," Šoškić said and stressed it is especially important to show in the coming period that Serbia can conduct a credible fiscal policy even without IMF supervision.

Asked how Serbia will finance its public debt this year, Šoškić warned about the danger of a rise in the country's risk premium, which could occur due to the postponement of the IMF arrangement and specified this could be reflected in the terms and structure of financing the public debt. "The terms could be less favorable than they were in 2011," Šoškić warned and noted that as a responsible country, Serbia must find alternatives in time.

"Our public debt has exceeded 45 percent of the GDP. A large portion of our debt is in foreign currency. Therefore, the exchange rate affects the level of our public debt. If there is depreciation, it will be much easier for the debt to surpass the 45 percent threshold," said the NBS governor.

"Public debt 43.2 percent of GDP"

The Serbian Finance Ministry announced on Monday that at the end of January the country's public debt amounted to EUR 14.47 billion, or 43.2 percent of gross domestic product (GDP).

According to the Budget System Law, Serbia's public debt should not exceed 45 percent of GDP.

At the end of January, Serbia's overall direct obligations equaled EUR 12.39 billion, including the internal debt (around EUR 5.21 billion), and external debt (EUR 7.18 billion). Indirect obligations totaled EUR 2.08 billion, the ministry published on its website.

At the end of 2011, the country's public debt reached EUR 14.47 billion, or 45.1 percent of GDP.

At the end of 2008, Serbia's public debt was USD 8.78 billion, or 29.2 percent of GDP.