Govt. adopts first package of anti-crisis measures

BELGRADE The Serbian government adopted the first package of anti-crisis measures for the next year on Thursday, the value of which totals around EUR 1bn. The package covers favorable loans for the economy's solvency. Govt. adopts first package of anti-crisis measures Serbian Finance and Economy Minister Mladjan Dinkic told reporters after the government session that the state would subsidize interest rates for loans with commercial banks, and noted that out of EUR 1bn, around EUR 300mn worth of loans would be granted to ensure the economy's solvency by the end of the year. The program would be open to all interested banks and the interest rate would total 3.5 percent annually with a foreign exchange clause, while dinar-based loans would have an annual interest rate equal to the reference interest rate of the National Bank of Serbia. “The payback deadline will total 18 months with grace period of six months,” Dinkic noted and added that the economy would be able to ask for loans for refinancing on such terms. During the government session, officials suggested that 104 para-fiscal taxes should be annulled and 14 ministries were instructed to propose which taxes could be annulled and whether some more could be annulled in the time to come. “The entire fiscal consolidation program will be released to the public on September 10,” Dinkic said and added that the plan covered a small part of the forthcoming budget review. “One of the conclusions which the government reached at its Thursday session was that around 30 agencies and funds can be shut down,” the minister explained. Mladjan Dinkic (Beta, file) Tanjug

Govt. adopts first package of anti-crisis measures

Serbian Finance and Economy Minister Mlađan Dinkić told reporters after the government session that the state would subsidize interest rates for loans with commercial banks, and noted that out of EUR 1bn, around EUR 300mn worth of loans would be granted to ensure the economy's solvency by the end of the year.

The program would be open to all interested banks and the interest rate would total 3.5 percent annually with a foreign exchange clause, while dinar-based loans would have an annual interest rate equal to the reference interest rate of the National Bank of Serbia.

“The payback deadline will total 18 months with grace period of six months,” Dinkić noted and added that the economy would be able to ask for loans for refinancing on such terms.

During the government session, officials suggested that 104 para-fiscal taxes should be annulled and 14 ministries were instructed to propose which taxes could be annulled and whether some more could be annulled in the time to come.

“The entire fiscal consolidation program will be released to the public on September 10,” Dinkić said and added that the plan covered a small part of the forthcoming budget review.

“One of the conclusions which the government reached at its Thursday session was that around 30 agencies and funds can be shut down,” the minister explained.