"We'll be remembered for visa liberalization"

PM Mirko Cvetković believes that his cabinet "will be remembered" for the visa liberalization with the EU, something that is expected by the end of the year.

Izvor: FoNet

Sunday, 12.07.2009.

10:58

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PM Mirko Cvetkovic believes that his cabinet "will be remembered" for the visa liberalization with the EU, something that is expected by the end of the year. "This government does not view reality through rose-tinted glasses and will not become complacent after the successes achieved so far, because we're aware there's much we haven't done and that huge work lies ahead," he told daily Vecernje Novosti in an interview. "We'll be remembered for visa liberalization" Cvetkovic also believes that stability has been achieved and that the state is slowly moving out of the crisis. "The Ministry of Finance analyses now show that income tax collection is at a satisfactory level and that a drop in imports is the main cause of the deficit. This has withheld VAT on imported goods from the state coffers. On the other hand, we'll have lower trade deficit than what we planned, which means a stronger dinar," said Cvetkovic. According to him, the budget deficit will be higher by some RSD 40bn than originally planned, or at 4.5 percent of the GDP. The prime minister believes that the IMF will accept Serbia's request for an added budget deficit. "We will offer strong guarantees that we can finance a deficit of 4.5 percent of the GDP, that we will intensify reforms in the state administration, continue with restructuring of public companies and cut down their subsidies." Cvetkovic went on to say that the higher deficit did not come as a consequence of a spending spree on the part of the state, and that the IMF "knows it". "With the March rebalancing of the budget we opted for a huge decrease in the state's expenditure. We saved wherever we could," said the premier, and stressed there are no plans for the government to lower salaries and pensions in the country. He also said that the "hole in the budget" might be covered by further borrowing: "Serbia is in negotiations with the EU and Russia on a loan, and a loan for the budget, in the amount of several million euros." "We've already received EUR 100mn from the EU funds, we have agreed a USD 250mn loan with the World Bank. We are negotiating with commercial banks as well, while a part will be covered via internal borrowing in the country, the so-called treasury securities," said Cvetkovic.

"We'll be remembered for visa liberalization"

Cvetković also believes that stability has been achieved and that the state is slowly moving out of the crisis.

"The Ministry of Finance analyses now show that income tax collection is at a satisfactory level and that a drop in imports is the main cause of the deficit. This has withheld VAT on imported goods from the state coffers. On the other hand, we'll have lower trade deficit than what we planned, which means a stronger dinar," said Cvetković.

According to him, the budget deficit will be higher by some RSD 40bn than originally planned, or at 4.5 percent of the GDP.

The prime minister believes that the IMF will accept Serbia's request for an added budget deficit.

"We will offer strong guarantees that we can finance a deficit of 4.5 percent of the GDP, that we will intensify reforms in the state administration, continue with restructuring of public companies and cut down their subsidies."

Cvetković went on to say that the higher deficit did not come as a consequence of a spending spree on the part of the state, and that the IMF "knows it".

"With the March rebalancing of the budget we opted for a huge decrease in the state's expenditure. We saved wherever we could," said the premier, and stressed there are no plans for the government to lower salaries and pensions in the country.

He also said that the "hole in the budget" might be covered by further borrowing: "Serbia is in negotiations with the EU and Russia on a loan, and a loan for the budget, in the amount of several million euros."

"We've already received EUR 100mn from the EU funds, we have agreed a USD 250mn loan with the World Bank. We are negotiating with commercial banks as well, while a part will be covered via internal borrowing in the country, the so-called treasury securities," said Cvetković.

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