Cvetković on GDP growth, IMF deal

Prime Minister Mirko Cvetkovic warned against expectations that the GDP growth could exceed 3.5 percent in Serbia next year. Cvetkovic spoke in Belgrade on Friday to say that this was a 0.5-percent correction of the assessment of the economic growth which the Serbian government made 15-20 days ago, when it said that the growth would be about four percent. Cvetkovic on GDP growth, IMF deal Speaking about the exchange rate of the dinar, the prime minister said that Serbia's official policy was that it did not want to defend the specific exchange rate, but that the central bank, NBS, had the task to prevent high daily oscillations of the dinar against leading world currencies, but not in the long run and not to affect the trend in the Serbian currency's exchange rate. "As a whole, I believe that the situation is much better than in the previous ten days," the prime minister told reporters at the Serbian government after a session of the Serbia-Republic of Srpska Cooperation Council. Cvetkovic said that the Council had exchanged experiences on the macroeconomic policy and discussed the drafting of the 2009 budget, need to save due to the crisis and effects of the announced increase of pensions and salaries on the Serbian budget. The Serbian prime minister said that Serbia's goal was to plan the 2009 budget, where the deficit would not exceed 1.5 percent of the GDP. The Council agreed that a joint Serbian-Srpska team be formed to monitor the effect of the international crisis on both countries in view of the links between their economies, Cvetkovic said. He expressed belief that that agreement on signing an agreement with the International Monetary Fund (IMF) would be reached early next week. "If you are asking whether the agreement with the IMF will be signed by next Monday or Tuesday, the answer is no, but I expect a coordination of positions and agreement to the reached on the signing," Cvetkovic stated. "The IMF is not demanding anything from us, rather, we are in the situation to have to fight against the global financial crisis and this is why we are cooperating with the IMF, but we are undertaking all measures independently, without any pressures," he concluded.

Cvetković on GDP growth, IMF deal

Speaking about the exchange rate of the dinar, the prime minister said that Serbia's official policy was that it did not want to defend the specific exchange rate, but that the central bank, NBS, had the task to prevent high daily oscillations of the dinar against leading world currencies, but not in the long run and not to affect the trend in the Serbian currency's exchange rate.

"As a whole, I believe that the situation is much better than in the previous ten days," the prime minister told reporters at the Serbian government after a session of the Serbia-Republic of Srpska Cooperation Council.

Cvetković said that the Council had exchanged experiences on the macroeconomic policy and discussed the drafting of the 2009 budget, need to save due to the crisis and effects of the announced increase of pensions and salaries on the Serbian budget.

The Serbian prime minister said that Serbia's goal was to plan the 2009 budget, where the deficit would not exceed 1.5 percent of the GDP.

The Council agreed that a joint Serbian-Srpska team be formed to monitor the effect of the international crisis on both countries in view of the links between their economies, Cvetković said.

He expressed belief that that agreement on signing an agreement with the International Monetary Fund (IMF) would be reached early next week.

"If you are asking whether the agreement with the IMF will be signed by next Monday or Tuesday, the answer is no, but I expect a coordination of positions and agreement to the reached on the signing," Cvetković stated.

"The IMF is not demanding anything from us, rather, we are in the situation to have to fight against the global financial crisis and this is why we are cooperating with the IMF, but we are undertaking all measures independently, without any pressures," he concluded.