IMF to meet with govt., NBS officials

An International Monetary Fund mission will be in Belgrade from today until November 9, where it will meet with government and National Bank representatives. Deputy Prime Minister Bozidar Djelic said recently that the theme of the discussions would be a new arrangement between the IMF and Serbia, and the 2009 budget. IMF to meet with govt., NBS officials He added that Serbia did not require financial assistance from the IMF but a loan agreement that would, he stressed, enhance Serbia’s credit rating and offer investors further guarantees that Serbia was safe for investment. Following Prime Minister Mirko Cvetkovic’s statement that Serbia could expect a recession in the coming year as a result of the global financial crisis, economic and political analyst Misa Brkic told B92 that it had been a matter of days before recession in Serbia was mentioned, and that it was the state’s full responsibility to adequately prepare itself . If Serbia falls into recession, ordinary citizens will be hardest hit. Among other things, that means cutting projected economic growth for next year from seven to four percent, the figures Economy Minister Mladjan Dinkic mentioned. “Less jobs, less employment, lower GDP, lower salaries, lower pensions, lower standard of living—that’s what a recession is,” said Brkic. He explained that the warning of a recession was not a sign for panic, but for prompt preparation to alleviate its repercussions. “The state is a serious matter, so too is a recession. Why is it important for that to be stated publicly? So that people and the state can prepare for such circumstances. What does preparing for the circumstances mean? For people: look after your money, don’t splash it around. When I say people, I mean the average man on the street, not the super-rich that can afford various kinds of luxuries. For the average man on the street, look after your money. For the state too: look after your money,” he stressed. According to Brkic, the IMF could serve as a kind of neutral arbiter, offering the government public justification for unkept pre-election promises that would greatly encumber the budget. “I expect IMF experts now to tell certain populists in government: gentlemen, you can do this, but the result of that will be an economic crisis in Serbia or a budgetary crisis. So, come to your senses, better now, than in six months’ or a year’s time,” he warned. Government and IMF representatives will also discuss a new arrangement between Serbia and the institution.

IMF to meet with govt., NBS officials

He added that Serbia did not require financial assistance from the IMF but a loan agreement that would, he stressed, enhance Serbia’s credit rating and offer investors further guarantees that Serbia was safe for investment.

Following Prime Minister Mirko Cvetković’s statement that Serbia could expect a recession in the coming year as a result of the global financial crisis, economic and political analyst Miša Brkić told B92 that it had been a matter of days before recession in Serbia was mentioned, and that it was the state’s full responsibility to adequately prepare itself .

If Serbia falls into recession, ordinary citizens will be hardest hit. Among other things, that means cutting projected economic growth for next year from seven to four percent, the figures Economy Minister Mlađan Dinkić mentioned.

“Less jobs, less employment, lower GDP, lower salaries, lower pensions, lower standard of living—that’s what a recession is,” said Brkić.

He explained that the warning of a recession was not a sign for panic, but for prompt preparation to alleviate its repercussions.

“The state is a serious matter, so too is a recession. Why is it important for that to be stated publicly? So that people and the state can prepare for such circumstances. What does preparing for the circumstances mean? For people: look after your money, don’t splash it around. When I say people, I mean the average man on the street, not the super-rich that can afford various kinds of luxuries. For the average man on the street, look after your money. For the state too: look after your money,” he stressed.

According to Brkić, the IMF could serve as a kind of neutral arbiter, offering the government public justification for unkept pre-election promises that would greatly encumber the budget.

“I expect IMF experts now to tell certain populists in government: gentlemen, you can do this, but the result of that will be an economic crisis in Serbia or a budgetary crisis. So, come to your senses, better now, than in six months’ or a year’s time,” he warned.

Government and IMF representatives will also discuss a new arrangement between Serbia and the institution.