Serbia's public debt growth "cannot be avoided"

Fiscal Council chairman Pavle Petrovic says nalyses show the public debt is likely to reach around 51 percent at the end of the year and continue to grow. There is danger of it reaching 60 percent by the end of 2015, which calls for appropriate steps, he warned. Serbia's public debt growth "cannot be avoided" The debt itself would be 55 percent, while 5 percent would be based on restitution, which is the upper limit according to the Maastricht Treaty, Petrovic stated for Ekonometar. Growth of the government debt cannot be avoided in 2012, because of a low GDP and a 4.25 percent projected fiscal deficit. That is why it is necessary to use the 2012 budget review to introduce measures that would stop the debt's mid-term growth as well and bring it down below the legal limit of 45 percent of the GDP, Petrovic noted. Unless some serious mid-term measures are instated once a new government is formed, the country could plunge into a debt crisis and economic chaos, he warned. Tanjug

Serbia's public debt growth "cannot be avoided"

The debt itself would be 55 percent, while 5 percent would be based on restitution, which is the upper limit according to the Maastricht Treaty, Petrović stated for Ekonometar.

Growth of the government debt cannot be avoided in 2012, because of a low GDP and a 4.25 percent projected fiscal deficit.

That is why it is necessary to use the 2012 budget review to introduce measures that would stop the debt's mid-term growth as well and bring it down below the legal limit of 45 percent of the GDP, Petrović noted.

Unless some serious mid-term measures are instated once a new government is formed, the country could plunge into a debt crisis and economic chaos, he warned.