| Serbia, IMF reach agreement |
| 4 November 2009 | 11:23
| Source:
FoNet |
BELGRADE --
Finance Minister Diana Dragutinović said that the negotiations with the International Monetary Fund (IMF) have been completed successfully.
She said that an agreement has been reached for extending the freezing of wages and pensions into 2010, which is expected to bring the largest amount of savings.
It was also agreed that pension reforms would begin, the effects of which would not be felt until 2020, but that would begin in 2010, Dragutinović said.
The minister also stated that the agreement with the IMF secures a "predictability" of fiscal policies as well for 2010 and afterwards.
Dragutinović said that two things were key in reaching an agreement with the IMF – a consensus in the government, "and perseverance".
She addded that accommodations which will be made in current state spending will be key to the new fiscal program.
By decreasing the participation of current expenditure in the GDP, there will be more room made for capital spending, and fiscal stimulants which are needed for the economy in 2010, said Dragutinović.
The negotiations with the visiting IMF mission were conducted in order to secure that Serbia receives the second and third installment of the USD 2.9bn loan approved earlier this year.
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