Minister, IMF at odds over wages

Economy Minister Mladjan Dinkic said that he is convinced that the government should unfreeze wages in the public sector and pensions soon. However, the International Monetary Fund (IMF) has stated that the time was not right for such a move yet, adding that the money that would be spent from the budget on public sector raises "could be used to build three new bridges". Minister, IMF at odds over wages Dinkic is the only government official that has been adamant publicly about unfreezing wages and pensions, adding that Serbia would be falling deeper into recession otherwise. The prime minister and finance minister have yet to comment on the issue, therefore it is still unclear whether Dinkic stands alone on the issue. An agreement was reached between the government and IMF for wages and pensions to remain frozen until 2011 as a condition of the stand-by arrangement between Serbia and the international financial institution, worth a total of EUR 2.9bn.

Minister, IMF at odds over wages

Dinkić is the only government official that has been adamant publicly about unfreezing wages and pensions, adding that Serbia would be falling deeper into recession otherwise.

The prime minister and finance minister have yet to comment on the issue, therefore it is still unclear whether Dinkić stands alone on the issue.

An agreement was reached between the government and IMF for wages and pensions to remain frozen until 2011 as a condition of the stand-by arrangement between Serbia and the international financial institution, worth a total of EUR 2.9bn.