Serbia to make early loan repayment worth USD 400mn

Since Dinkic was the one who led the negotiations on reducing pre-war debt to foreign governments and banks, I suppose he knows what he's doing here - are the new debts that Serbia is taking out now at a lower interest rate than the London and Paris club arrangements? A few numbers wouldn't hurt in an article like this.

Serbia should repay these foreign currency loans asap.

Serbia does not need to borrow money. If should do what the American Federal Reserve Bank does, what the Bank of England does, what the Bank of Japan does, and what the European Central Bank does. It should create new money to save the nation.

The EU is restraining Serbian economic growth. The National Bank of Serbia must own fixed sums of Euros and other western currencies before the EU allows it to create new Dinars. The result is that Dinars are scare in Serbia. Serbs have skills and plenty of time on their hands but there is not enough money in circulation to employ them.

The National Bank of Serbia should create Dinars (on computer screens) and transfer this money to the government. The government should then begin major infrastructure works across the country which would employ a million unemployed Serbs.

Once paid to workers, these new Dinars would be used to buy locally grown food and other goods produced in Serbia. This money would also be used to pay taxes to the government.

Inflation occurs when new money is created but no new product is started. Under this scheme the new money will go into new infrastructure and will not cause much (or any) inflation.

And even if some inflation is cause, which is worse, a little inflation or a lot of poverty.

Serbia still has its own currency and can print as much as it needs.

It does seem like, since the new government was put in place, that Serbia is doing better at managing finances.
"Serbia is able to make early payments of expensive loans"
But when were those "expensive loans" taken out in the first place (what year/s) and by whom? At the time Serbia took those loans were there no better alternatives?

Where is everybody? This is good news, for a change. (Hard to tell from the story, maybe.) According to Blic, he's investing the cash brought in by the tax amnesty and that coming from the sale of Eurobonds at about 2% less than the London Club debt being repaid. (Repaying debt is a kind of investment, after all.) There's another article here at B92 about needing only half that long-discussed loan from the Russians, and that if they charge too much, it should be possible to get the sum from another sale of Eurobonds. The amount of debt overall hasn't been reduced that much, but getting the interest payments down will help the budget for years to come. The closer Serbia comes to EU membership, the better its chances will be for cheaper money, meaning less will be going out every year on financing government debt, and there will be more for infrastructure and other needed spending.

Hey Michael,

Do you have that post of yours saved in a text file, or do you type it out from scratch ever time?

Well done,Serbia.Well done.
This is a strong indication that,despite the problems,the economy of Serbia is moving in the right direction.
I wish we could have such a responsible politicians in Albania.Our politicians are nothing but NATURAL BORN IGNORANTS.
Dean the Great,Berat,ALBANIA.

(ida, 18 March 2013 04:49) - The London and Paris Clubs were groups of creditors - governments and private banks - that had loaned money to Yugoslavia under Tito and Milosevic that Serbia and the rest could not hope to repay after the war without destroying their economies. Much of the money owed owed was written off, and repayment of the rest was rescheduled over decades.

Danilo

Most people don't understand how money and credit work. They believe that printing money is inflationary and bad. But the western nations print trillions of dollars, pounds and euros without causing inflation. That is worth repeating.

Western nations are also hypocrites; they tell Serbia, Greece, Ireland, and Spain to cut public spending and increase taxes while they cut taxes and print trillions to keep their economies afloat. This is also worth repeating.

If you want to understand the world in which you live, then you must understand money and credit. Once you understand money and credit you will know that the only political battle worth fighting is the one for control over a nations money supply. This is worth repeating a hundred times.

repeat it as much as you like. No one is going to accept a plan that makes imported good prohibitively expensive.

No one is going to like some "seal the borders" solution

quadruple the price of an iphone and watch people take to the streets.

Well done,Serbia.Well done.
This is a strong indication that,despite the problems,the economy of Serbia is moving in the right direction.
I wish we could have such a responsible politicians in Albania.Our politicians are nothing but NATURAL BORN IGNORANTS.
Dean the Great,Berat,ALBANIA.

Hey Michael,

Do you have that post of yours saved in a text file, or do you type it out from scratch ever time?

Since Dinkic was the one who led the negotiations on reducing pre-war debt to foreign governments and banks, I suppose he knows what he's doing here - are the new debts that Serbia is taking out now at a lower interest rate than the London and Paris club arrangements? A few numbers wouldn't hurt in an article like this.

Where is everybody? This is good news, for a change. (Hard to tell from the story, maybe.) According to Blic, he's investing the cash brought in by the tax amnesty and that coming from the sale of Eurobonds at about 2% less than the London Club debt being repaid. (Repaying debt is a kind of investment, after all.) There's another article here at B92 about needing only half that long-discussed loan from the Russians, and that if they charge too much, it should be possible to get the sum from another sale of Eurobonds. The amount of debt overall hasn't been reduced that much, but getting the interest payments down will help the budget for years to come. The closer Serbia comes to EU membership, the better its chances will be for cheaper money, meaning less will be going out every year on financing government debt, and there will be more for infrastructure and other needed spending.

(ida, 18 March 2013 04:49) - The London and Paris Clubs were groups of creditors - governments and private banks - that had loaned money to Yugoslavia under Tito and Milosevic that Serbia and the rest could not hope to repay after the war without destroying their economies. Much of the money owed owed was written off, and repayment of the rest was rescheduled over decades.

Serbia should repay these foreign currency loans asap.

Serbia does not need to borrow money. If should do what the American Federal Reserve Bank does, what the Bank of England does, what the Bank of Japan does, and what the European Central Bank does. It should create new money to save the nation.

The EU is restraining Serbian economic growth. The National Bank of Serbia must own fixed sums of Euros and other western currencies before the EU allows it to create new Dinars. The result is that Dinars are scare in Serbia. Serbs have skills and plenty of time on their hands but there is not enough money in circulation to employ them.

The National Bank of Serbia should create Dinars (on computer screens) and transfer this money to the government. The government should then begin major infrastructure works across the country which would employ a million unemployed Serbs.

Once paid to workers, these new Dinars would be used to buy locally grown food and other goods produced in Serbia. This money would also be used to pay taxes to the government.

Inflation occurs when new money is created but no new product is started. Under this scheme the new money will go into new infrastructure and will not cause much (or any) inflation.

And even if some inflation is cause, which is worse, a little inflation or a lot of poverty.

Serbia still has its own currency and can print as much as it needs.

Danilo

Most people don't understand how money and credit work. They believe that printing money is inflationary and bad. But the western nations print trillions of dollars, pounds and euros without causing inflation. That is worth repeating.

Western nations are also hypocrites; they tell Serbia, Greece, Ireland, and Spain to cut public spending and increase taxes while they cut taxes and print trillions to keep their economies afloat. This is also worth repeating.

If you want to understand the world in which you live, then you must understand money and credit. Once you understand money and credit you will know that the only political battle worth fighting is the one for control over a nations money supply. This is worth repeating a hundred times.

repeat it as much as you like. No one is going to accept a plan that makes imported good prohibitively expensive.

No one is going to like some "seal the borders" solution

quadruple the price of an iphone and watch people take to the streets.

It does seem like, since the new government was put in place, that Serbia is doing better at managing finances.
"Serbia is able to make early payments of expensive loans"
But when were those "expensive loans" taken out in the first place (what year/s) and by whom? At the time Serbia took those loans were there no better alternatives?