IMF official identifies low growth as "key problem"

Permanent representative of the IMF in Serbia Bogdan Lissovolik says high fiscal and external deficit and inflation rate are Serbian economy's big problems.

Izvor: Tanjug

Tuesday, 02.04.2013.

14:08

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BELGRADE Permanent representative of the IMF in Serbia Bogdan Lissovolik says high fiscal and external deficit and inflation rate are Serbian economy's big problems. However, he identified low economic growth as "perhaps the key one." IMF official identifies low growth as "key problem" "Economic growth requests an overall improvement in the business environment, and further progress in reducing the fiscal and external deficits and inflation rate is also necessary in order for high growth to be sustainable," Lissovolik told Belgrade-based daily Vecernje Novosti. Ahead of an IMF delegation's visit to Serbia, Lissovolik said that, in order to make a possible new arrangement, the country needs to go on with reforms in the field of the pensions system, the labor market, the public sector and its business conditions. "If the next mission is negotiating one, about an agreement," Lissovolik said that the key areas will be fiscal policy and structural reforms that would ensure economic growth. "In terms of fiscal policy, an agreement on a credible multi-year deficit reduction plan should be reached, that would put public debt on a sustainable footing. As for the issue of structural reforms, we need to agree on a package of effective measures in fields such as the pension system, the labor market, public enterprises and business environment," he noted. Asked whether Serbia is closer to an agreement then in February, when the deal was practically frozen, Lissovolik said that the ball is in the Serbian authorities' court now, and that the government's commitment to implementing a healthy economic policy is the key to success in negotiations. When it comes to Serbia's public debt, which amounts to almost 60 percent of GDP, he said the debt is too high and added that the state has set by law a maximum borrowing limit of 45 percent of GDP. Lissovolik also said that Serbia's main goal should be to unfreeze growth in exporting sectors, but added that concrete objectives should be set realistically. (file) Tanjug Vecernje novosti

IMF official identifies low growth as "key problem"

"Economic growth requests an overall improvement in the business environment, and further progress in reducing the fiscal and external deficits and inflation rate is also necessary in order for high growth to be sustainable," Lissovolik told Belgrade-based daily Večernje Novosti.

Ahead of an IMF delegation's visit to Serbia, Lissovolik said that, in order to make a possible new arrangement, the country needs to go on with reforms in the field of the pensions system, the labor market, the public sector and its business conditions.

"If the next mission is negotiating one, about an agreement," Lissovolik said that the key areas will be fiscal policy and structural reforms that would ensure economic growth.

"In terms of fiscal policy, an agreement on a credible multi-year deficit reduction plan should be reached, that would put public debt on a sustainable footing. As for the issue of structural reforms, we need to agree on a package of effective measures in fields such as the pension system, the labor market, public enterprises and business environment," he noted.

Asked whether Serbia is closer to an agreement then in February, when the deal was practically frozen, Lissovolik said that the ball is in the Serbian authorities' court now, and that the government's commitment to implementing a healthy economic policy is the key to success in negotiations.

When it comes to Serbia's public debt, which amounts to almost 60 percent of GDP, he said the debt is too high and added that the state has set by law a maximum borrowing limit of 45 percent of GDP.

Lissovolik also said that Serbia's main goal should be to unfreeze growth in exporting sectors, but added that concrete objectives should be set realistically.

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