Prime minister warns of possible debt crisis

BELGRADE Serbia’s Prime Minister Ivica Dacic has stated that Serbia could face debt crisis and debt bondage. He added that the country could be unable to pay wages and pensions and function normally. Prime minister warns of possible debt crisis “This is why the government will next week propose anti-crisis measures aimed at saving up to EUR 1bn. It is estimated that the indebtedness rate is 50 percent of the GDP and that it could grow to 60 percent,” Dacic told reporters on Friday. He said that the measures included budget revision and adoption of a dozen bills that should reduce unnecessary expenditures, prevent recession and drop in the GDP and industrial production. The prime minister said that Serbia needed several billions of euros and that officials should therefore have talks with the International Monetary Fund (IMF), Russia, Azerbaijan, Switzerland and everybody else whose interest was to invest and give loans. Dacic said that Serbia had the most unstable currency and lowest wages in the region, adding that business conditions could not even be compared to the countries in the region. He added that 130 taxes and dozens of unnecessary agencies would be repealed. “Those are measures to stop the bleeding and prevent bankruptcy, but we also need long-term measures for a real economic recovery. We will work simultaneously on both things,” the prime minister noted. Ivica Dacic (file) Beta

Prime minister warns of possible debt crisis

“This is why the government will next week propose anti-crisis measures aimed at saving up to EUR 1bn. It is estimated that the indebtedness rate is 50 percent of the GDP and that it could grow to 60 percent,” Dačić told reporters on Friday.

He said that the measures included budget revision and adoption of a dozen bills that should reduce unnecessary expenditures, prevent recession and drop in the GDP and industrial production.

The prime minister said that Serbia needed several billions of euros and that officials should therefore have talks with the International Monetary Fund (IMF), Russia, Azerbaijan, Switzerland and everybody else whose interest was to invest and give loans.

Dačić said that Serbia had the most unstable currency and lowest wages in the region, adding that business conditions could not even be compared to the countries in the region.

He added that 130 taxes and dozens of unnecessary agencies would be repealed.

“Those are measures to stop the bleeding and prevent bankruptcy, but we also need long-term measures for a real economic recovery. We will work simultaneously on both things,” the prime minister noted.